We (my wife and I) accepted on offer on our home a couple weeks ago and close on 11/30. We have 1 month free rent back and another month at the new owners prorated mortgage if we need. Just this past weekend we had our offer accepted on a new home. This was the 3rd home we had offered on, and with our finances, we would have only been able to submit an offer contingent on the sale of our home, which would not have worked in this market. So we offered the home with my father-in-law’s name on the title/loan, because he has the finances to qualify for an additional mortgage. The idea would’ve been to buy the home from him later through a real estate lawyer.
But, the current owners of the new home asked for a late closing date (12/28), so in theory, we’d have enough time to switch the title/loan to our name and qualify for a loan ourselves. Complicating the matter, my FIL qualified through Fairway at a 3.25% interest rate with 0 points, and I’ve seen rates a quite a bit lower online at about 2.875 with 0 or little points (ex. Better). The interest rate wasn’t the primary concern when my FIL qualified for the loan, it was mostly the ability to close quickly and competition against potential cash offers. The total loan amount on the home would be $528,000, so a difference of that much is something like $142 a month, which isn’t nothing.
Some info that may or may not be helpful:
-Current home is in Oregon, new home is in Washington state
-We do plan on staying in the new home long-term, 10-20 years or more
Here’s what I think our options are:
Continue with the plan with my FIL’s name on the loan/title, and qualify ourselves separately, and work through a real estate attorney after the fact. Continue like we’re buying the home through Fairway with FIL’s name on the loan, then down the road, but before closing say we’re switching lenders and names on title Switch our names over to the current loan/offer, and refinance later (probably the most expensive option
Any thoughts how how to proceed would be much appreciated. Thanks!
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