Trading improves chances of qualifying for a loan

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Trading houses actually makes it easier for borrowers to qualify for a new mortgage on the property they are buying because mortgage on the current house is paid off when they trade. More info at How to swap... easy to qualify for a loan when trading
 

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When swapping existing mortgages will be paid off at closing. Since property swap involves party A buying a property from party B party A's mortgage will be paid off from party B's proceeds, while party B's mortgage will be paid off from party A's proceeds. Because most transactions are financed actual funds are coming from the mortgage companies, plus equity that either party had, (if any).