Buy Before You Sell
Common Scenario When Moving As A Homeowner
You already own a home. You plan to move to a new home and ultimately sell your former home, but in what order? A lot of people think that they need to sell their current home before buying a new one. That may not be the case with the right financing solutions. Selling before you buy can be stressful. You may worry about where you will live, have to move twice, or rush to accept an offer on your current home. Alternatively, submitting offers on a new home “contingent” on the sale of your old home are unlikely to get accepted. Don’t worry, lenders run into this scenario all the time and have many different solutions.
Financing Solutions to Buy - Non-contingent on Sale
Bridge Loans: If you have equity in your current property, you can put a short term loan on your existing property that gives you the capital to buy the new property. Once you sell your old home the Bridge loan is paid off at the time of sale.
Qualifying to Hold Both Properties: You may have enough income to buy the new home and carry both payments until you sell. Your new homes mortgage payments will not start right away giving you time to sell. Once you have the proceeds of the sale from your old home you can pay down the principal of the new loan without prepayment penalties.
Retirees: A structured distribution can help create more income for qualification purposes.
Business Owners: Bank Statement loans often credit you more income to qualify.
Creative Solutions
A lender will evaluate your specific situation and find more options than you thought you have. There are ways to be “non-contingent” on the sale of your old property. You don’t have to wait to buy until you sell. Take the stress out of moving homes and give yourself time to maximize your proceeds from the home you are selling.
