When you are in the market of buying a home, this can be a very tricky task, and if you add on top of that the requirement of selling the home where you currently live, it can mean that much more frustration if you don’t play your cards right. In this tutorial, we will go over how you can Buy A Home While Selling Current Home and these steps will make your experience as easy and smooth as possible. There isn’t a situation that might make you more nervous than trying to Buy A Home While Selling Current Home just for the fact that there are a lot of variables that need to take place to close both transactions efficiently and effectively.
For example, if you are going to purchase a new construction home, most builders are going to want to ensure your current home is under contract and will sell so that you aren’t carrying 2 mortgages after your new home is finished. From a firsthand experience, I can tell you that before allowing a new home to even be started, your current home needed a contract on it and a tentative close date as well. In this market, builders don’t want to take a chance of a potential borrower backing out on them due to contingencies.
When trying to Buy A Home While Selling Current Home it is almost always better to sell your home first before your new home is bought or done being built. When you are sitting on your home and it is imperative that it sells, it is better to inconvenience yourself for a few months than to lose out on a buyer. Let’s say you are building a home and you sell your home immediately upon listing it, you might find yourself needing to pack up all your stuff and live in short-term rental properties.
This isn’t ideal, but you have to think that it is better you sell your home than having to wait and possibly carry 2 mortgages. Yes, you will probably have to pack and unpack an additional time, but if you treat the short-term rental like a “vacation home” you should only bring what is needed so that you can put a majority of your stuff in storage so finding a fully furnished home is vital.
When tasked with trying to Buy A Home While Selling Current Home you might want to look into taking on a Bridge Loan to get you from point A to point B. Now what a Bridge Loan essentially does is it allows the borrower to access and tap into their current home’s equity and with this equity, a borrower can use the proceeds to buy a new home before selling their own.
Yes, you will still have financing on two homes, but if you can save a portion of the bridge loan to service the debt on your existing home then once your current house sells, you will use the proceeds to pay off the home and the bridge loan leaving you with just one loan remaining on your new home.
As you can see, there are ways for you to Buy A Home While Selling Current Home and if you plan out these options properly, you can avoid the headaches and stress associated with these transactions. Making these transactions as smooth as possible should be the key and following this advice will do just that.
If you need help with financing or a Bridge Loan, you need to contact me ASAP to go over your options at 888-900-1020 or by getting more information from my website www.loanconsultants.org. I look forward to making your home ownership dreams come true!