Hello Lemuel. If you are selling and buying porting your mortgage is one of your options. Porting is the process of moving your mortgage from one property to another. There are 3 different types of ports that can happen when you sell a home and buy another. Each one different. Your mortgage can be either a straight port, port-increase, or port-decrease. The simplest is the straight port where you are moving your mortgage from one property to another with the same amount of mortgage. The rate, remaining term, and amount stay the same, no penalties involved and the process is straightforward as there is no new money involved. The second option is a port increase where you need extra funds for the new home, (this is usually the case if you are buying a more expensive home and have less down payment) In this case the remaining mortgage term is moved to the new property, the mortgage amount is increased and finally the interest rate is blended with today`s available rates. If the rates available today are lower than your interest rate then your rate will be blended and reduced, if the rates are higher today your rate will be blended and increased. I can do a rough calculation for you if you like, see my contact info at the bottom of the reply. The final port is the port-decrease. In this case you need less mortgage than the remaining mortgage amount you currently have. Your mortgage term, and rate get moved to the new property only the mortgage amount is reduced. There may be a penalty involved in this reduction of mortgage. If you are reducing your mortgage amount by greater than the allowable yearly prepayment options that you have signed for on your mortgage documents you may be charged a penalty for the extra reduction. There is one more option that one can consider, if your bank is not going to offer you a good rate on your port (they already got you so they often don`t) then you can always consider a new mortgage at another lender at full discount. It may save you more than your penalty to break, the calculations often tell the tale if it is worth it. I can do these calculations for you if you like and get you information on the lowest rates available today. I hope this information has helped you Lemuel. I can go into more detail if you like, explain further, and do some rough calculations, no obligation if you like. Please don`t hesitate to contact me:Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

As long as there is not too much time between the sale of your existing home and the purchase of the new home most lenders will allow you to port the mortgage. In other-words you keep your existing mortgage and add the extra funds you need to buy the new house on top. The interest rate is a blend between what you have already and the rate at the time for the extra money you need. Now you have one mortgage amount, a blended rate, one mortgage payment and a new house!! -Abraham Niyazi - Easyrate.ca x 115

If your rate is too high you might consider breaking the mortgage and getting one of today`s low rates. I did that and I ended up saving more than my penalty to break my mortgage. And I didn`t miss out on today`s low rate either.

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Planning to buy a house but have not found one yet. should we get pre-approved first? how long before that pre-approval expires? thank you

The good ones are valid for a few weeks. Higher interest can be up to 3 months.

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My husband and i are beginning the process of buying our first home. we'll be setting up an appt. soon for a pre-approval to then begin looking at houses. i know that typically lenders approve for more than it is advised to borrow and i'm wondering if anyone can give me a good formula for about how much we'll qualify for vs. how much we should ideally not exceed - i've tried online calculators but they are all so different! we make 85000/year and have 700/month in debt. also - since pre-approvals expire, if we don't find a house within the time frame given will we have to get pre-approved again? thanks for your help!

The best method to proceed would be to determine how much you can afford. Think about the house you want and how much it cost. Have the lender work out the monthly payments and if you think that's too high then decrease the price. Once you determine the monthly payment you can manage every month then that's the house price you'll set out to look for. There are a lot of no income/no doc loans with great rates where you don't even have to worry about your income. All you need a good credit history. I work for Citibank and this is pretty much what 95% of first-time homebuyer does. Most of the time the pre-approval is valid for 3 months which I think is a long time. If it expires and for some reason you didn't find a house, then yes, you'll have to get another letter. But it'll be very easy. The lender will just have to get another credit check done. Good luck house-hunting.

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I haven't found a place to buy yet, and it is unlikely that i will before it expires. i know that i would have to get a new pre-approval letter when i do find something, but does that mean the rate will change on the new one to whatever the current interest rate is? is there any way to extend my current pre-approval letter or keep the rate that is on this one? thanks in advance for any advice!

Your letter did not guarantee you an interest rate. That's a common misunderstanding. You will be allowed to lock in an interest rate as soon as you have an accepted contract. Don't even worry about the letter at all. There are 150 mortgage companies that are desperate for your business if you have good credit. There is one way for you to guarantee an interest rate. SOme banks will keep today's interest rate for you for 90 days for $1,800 paid upfront and nonrefundable. No one ever does this because it's so expensive. Ask how much a 6 month lock would cost you. It's fun to know.

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My fiance and i were recently pre-approved for a mortgage loan, yet we have somewhat limited credit history. a co-worker told me that every time you apply for a pre-approval, it brings down your credit score ... she also said that we only have 90 days to take out a loan before the pre-approval expires. is this true? if so, i'm worried we won't find a home within the 90 days and we won't get a second pre-approval.

Since you were pre-approved, you have already gotten the loan. You don't get pre-approved unless the mortgage company thinks that you are credit worthy. You can get extensions on the loan approval. Don't listen to the water cooler authorities, as they don't know Jack about anything. She is just pulling your chain. Contact the mortgage company broker who handled your pre-approval. She will hold your hand through the whole process, as she only gets her commission after you have closed your contract (escrow) on the property. I have gone throughout house buying several times. Don't worry. Just make sure that you have a loan that won't jump in the future.

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I had been pre-qualified (or pre-approved, they never told me which) back in may 2008. i had a letter which stated i was pre-approved for a mortgage loan, and i started looking for a home. the letter expired in september, and before it did, i called the lender to get it extended. they said i would have to re-apply. i don't want to get either a prequal or pre-approval done again if they're going to pull my credit and lower my score again. if i find a home within a few months, then i expect to have my credit pulled once more when i actually apply for the loan. are there any lenders that pre-qualify without pulling credit? thanks.

If you are not prepared to purchase a house why are you going through all the trouble of getting pre-approved or qualified to purchase a house. When you know you are ready then you should to to a mortgage broker to get pre-approved. You are wasting a lot of people's time as well as yours by going through the motions each time you get a spare minute on your hand and you now decide that you want to see if you are still pre-approved for a mortgage. It take approximately 2-3 weeks to get pre-approved. In some instances it could be less if you are able to get all the documents required. After which you then can find a real estate agent to assist you in finding a property to purchase. In order to get pre-approved for a mortgage it is required a credit report be obtained on you and anyone else that will be on the mortgage with you. Normally if you are looking for a mortgage and it is done within a certain time frame you will not lose any credit points. Doing it the way you are doing it cause you to loose credit points. That is spreading out your pre-approval dates more than 30-45 days. I hope this has been of some use to you, good luck. "FIGHT ON"

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Are co-signers allowed? can you buy hud home, or foreclosures? where can i find a reliable lender in michigan? how far in advance should we try for pre-approval? does a pre-approval expire? well the housed we are looking at are between $25k-$50k...what kind of loans can you suggest for people with bad credit. should we use our vehicles as collateral? ok so i have 1 person telling me they are good for people with bad credit and 3 who say otherwise, can you send me some links to information resources?

FHA loans are perfect for people with bad credit. They will accept a co-signer but the signer must be on the deed with you. You can not buy a repo. Those will do no repairs. FHA loans require repairs. If a pre-approval expires, it can be extended at no cost.

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In the first week of june i submitted an offer to purchase a property for $500,000. my realtor was the listing agent (so he acted as a dual agent). the property had been listed for over 900 days and i offered them 50% of asking price. the sellers denied my offer. a month later my agent called me and informed me that the sellers reconsidered and are now willing to accept my offer...so all i needed to do was "put it in writing" and have a quick closing. i signed the contract and included verification of funds and a pre-approval letter from my bank. also, per our agreement the closing was scheduled for after 4 weeks (mortgage and inspection contingencies were only 4 business days long). anyways, after i submitted my offer i was informed after 1 week that my offer was "way too low". i was quite upset that the sellers had a change of heart. anyways, i moved on to another property. i now learned that just last week the home closed for $475,000 ($25,000 less than my "way too low offer"). i found out that my agent also acted as a dual agent for this transaction. i contacted him and he informed me that the reason the sellers chose to accept this offer was because it was a cash deal. i informed my agent that he already knew i would also waive my mortgage contingency if they insisted (based on a previous discussion we had). anyways, i find it hard to believe that the bank would have sacrificed $25,000 to not wait another 4 business days until my contingency expired. i feel my agent acted unethically and may have even committed fraud. what do you feel are the next steps i should take?

What did your realtor gain if what you think is true? He actually made less money on commissions.

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Wells fargo pre-approved me for a home mortgage. they told me to go ahead and find the home. i found the home and signed a contract 74 days ago. i paid for the home inspection, appraisal and home insurance. the mortgage specialist continued to assure me that everything was looking good. when the time for funding came around, i kept on calling to find out why the title company did not receive the funds for the closing. at the last minute, like two days before the first contract expired, i called again and they requested a letter from the social security disability administration stating that i was going to be disabled for at least three years. i asked the ssda for an award letter but it just states that i receive ssd payments (not ssi). i am only 47 years old and also receive a state pension for my disability. on my state pension letter that i gave wells fargo, it states that my benefits will be a lifetime benefit, meaning that i will not be able to work any longer. the ssd letter doen't say anything like that because they will review your case every few years or so. i explained everything to the mortgage consultant and gave them all requested documents. they even asked me to provide a gift letter from my domestic partner of 22 years. they also asked me to submit my partner's past two months bank information to justify that he has means to give me the money. my partner is a retired school administrator who receives a state pension and social security benefits. he had a durango 2005, almost new that we did not use because it was a gas gusher and he sold it and gave me the money for the down payment of the house, so i also proved to them where the money came from by giving them a copy of the check he received for the sale of the durango. we spent money, energies and time on this process. we traveled out of state to purchse the house with the wells fargo's mortgage consultant advice and approval. i even received an fha package congratulating me about the loan approval and amount to take to the closing. i even called the office of one of the ceo of the mortgage department in des moines, iowa and one of the top executive assistant to the president listened to my case and twice assured me that everything was going to be approved; then, today the wanted to continue extending this process. it cost us around $500.00 a week for hotel, food and gas while we do the inspection, appraisal, buy insurance for the property and the closing the assured us was going to take place twice on or before the end of january. then they extended it to february 15th and now february 23rd , which they told me will not take place because of the letter they wanted at the last minute from the ssda. i honestly believe that everything when down hill when i told the mortgage loan consultant that i was gay and lived with my partner for 22 years. now, since i already did my part of the agreement between wells fargo and me and they kept on prolonging the closing process and never funded the loan, can i sue them?

No, you can not sue anyone for not lending you money. Loans are voluntary. You also have suffered no loss