Maybe you don't need the equity from your present home in order to purchase the next one. In this case, I don't think Pros & Cons are needed, just a "congratulations - good for you"! There have been some underwriting guideline changes that you will need to know about if you are going to be financing the new purchase:

Fannie Mae's most recent instruction to lenders on how to handle a borrower's income producing property, including a  principal residence that will be rented out: "Verify the net rental income or loss with the borrower's most recent signed federal income tax return (Pages 1, 2 and Schedule E). A copy of the current lease agreement may be used only if the property is not on the Schedule E because it was acquired subsequent to filing the tax returns. If the property was formerly a primary residence, a fully executed lease agreement, receipt of a security deposit, and documented equity in the property of at least 30 percent must be provided. If the total expense ratio already includes the entire rental property payment (i.e., income from the property not considered), no documentation is required. Net rental income is not allowed on second homes and should not be used for income on the subject property."

What this means is:

• If you have less than 30% equity verified by appraisal on your existing residence, you may have difficulties obtaining financing for the new one
• Even if you have more than 30% equity, additional documentation is now required
• You may need to qualify with both PITI payments (plus any HOA dues, MI etc)

Difficulties and unpleasant surprises can be avoided when you get preapproved for your financing before you head out to purchase a home. 

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com