Can You Buy Your Next Home Before Selling Your Current One? Let’s Find Out!
Happy Friday Everyone!
We hear it all the time, you want to sell your home and buy something new, but getting everything timed right can be stressful. Our fantastic, trusted Lender Steph Noble from Cross Country Mortgage, has some great advice on how to successfully avoid what could be a difficult situation.
Let's dig in: Your guide to buying a new home without selling first
Imagine stepping into your dream home, keys in hand, without the pressure of having sold your current one. This isn't just a dream—it's a strategic move that's entirely possible. Let's dive into how you can unlock the door to your next home adventure, leaving behind the stress of 'sell first, buy later.
Purchasing your next home before selling your current one can offer tremendous flexibility and strategic advantages. This method allows you to bypass the pressure of syncing sale and purchase timelines, potentially securing a better deal on both transactions. Here’s an overview of why and how to make this smart move.
Advantages:
Flexibility in Moving: Transition at your own pace without temporary housing hassles.
Better Sale Outcomes: Wait for the best offer on your existing home without rush.
Stronger Purchase Offers: Buy your next home without sale contingencies, making your bid more appealing.
How to Do It: Financing Solutions
Bridge Loans: Utilize the equity in your current home to finance the next, repaying when you sell.
Home Equity Line of Credit (HELOC): Borrow against your home's equity to fund your down payment, then settle it post-sale.
80-10-10 Loan: Avoid private mortgage insurance (PMI) with this combination of loans, ideal if you’re short on down payment funds but have a reliable income.
Renting Out Your Current Home: Convert your existing property into a rental for extra income to cover the new mortgage.
Moving Forward
Choosing to buy before selling opens up new possibilities, but it requires careful financial planning. Explore these loan options and consider the benefits to determine the best path for you. Consulting with a mortgage professional as well as a real estate agent can offer personalized insights, helping you to proceed with confidence and clarity.
Your next home adventure starts now—with the right strategy, you can make it a seamless and successful journey.
We want to thank Steph for this great information. Please let us know if we can connect you with her to dig deeper and see if this is a beneficial option for you.
Amy, Kristine and Margo - The Place Portland Team