How to Buy a House With an Active Mortgage

How to Get an Affordable Mortgage

So you’re in the market for a new home, and you’ve found the perfect one. The only problem is, you have an active mortgage on your current home. Don’t worry – it’s not as difficult to buy a house with an active mortgage as you might think! Mortgage Broker Christchurch will walk you through the process of buying a new home while still keeping your current mortgage.

The first step to buying a house with an active mortgage is to speak with your current lender. You will want to discuss the details of your current loan, including the interest rate and any prepayment penalties that may apply. Your lender will also help you calculate what your monthly payments would be if you took out a new loan for the home you are looking to purchase.

Mortgage Broker Christchurch

Once you have established this information, it’s time to start shopping around for a new lender. Many lenders offer attractive rates and terms for borrowers with existing mortgages – so don’t hesitate to ask around and compare options! Be sure to get pre-approved for a loan before making any offers on potential homes. This will give you more negotiating power when it comes to making your bid.

When you find the home of your dreams, it’s time to make an offer. In this step, it’s important to remember that you are still responsible for paying off your existing mortgage (in addition to a new loan for the house you’re about to purchase). If possible, try to negotiate a lower sale price or closing costs with the seller in order to help alleviate some of this financial burden.

Once your offer is accepted and the paperwork is signed, you will submit all of your documents to both lenders – one for your current mortgage and another for the new loan on the home you are buying. Depending on how quickly both loans can be processed, it may take several weeks before closing can occur.