It is common for homeowners to be in the process of buying and selling a home at the same time. If you are looking to upgrade to a nicer home for your family, then it makes sense that you should sell your current home and roll the equity into the next purchase.
Even though you are already carrying a mortgage on your current property, it doesn’t mean that you can’t work through the details required to buy another home. The important thing is to make sure that you have an experienced real estate agent who can help you minimize the complications when closing on both deals.
Tips for Buying and Selling a Home Simultaneously
Here are a few things that we will oversee to minimize the problems of buying and selling a home at the same time:
Coordinating Schedules: Some people decide to buy first before selling their current property. But, if you choose this option, then you will need to be prepared to foot the bill for two mortgages. Additionally, having the original mortgage could affect your debt-to-income ratio, which makes it harder to get the financing necessary for the new home. Another option is to sell first and find a temporary place to live while you are looking for a new property.
Contingency Offers: Another option is to make an offer on a home that you would like to buy, but include a contingency in the contract. This contingency means that you have a window of time to sell your current home so that you have the equity to buy the next property. A contingency offer can be a bit challenging in a seller’s market though because of the potential problems that will result if the deal falls through.
Other Financing Options: You don’t necessarily need to have another mortgage to buy a new home. Instead, you might be able to gain the financing through a bridge loan, HELOC, or personal savings to pay for the new property. Then, the equity can be rolled into the loan after the first home sells.
The key is to work with a real estate agent who will assess your individual situation to help you determine the right strategies for buying and selling at the same time. There are many options available, and I invite you to call today to learn more about the solutions that are available.