One of the biggest challenges homeowners face is buying a new home while needing equity from their current home to afford it. Or, maybe you simply don’t want to carry two mortgages at once. Either way, the process can feel overwhelming. The biggest concern? Timing. If your current home goes under contract, will you be able to find and close on a new home in time to avoid being… homeless?
The good news is that we’ve successfully navigated this situation many times. With the right strategy, you can make the transition smoothly. Here are three options to consider:
Option 1: Get Under Contract with Your New Home First
Start the search for your new home while simultaneously preparing your current home for sale. Once you secure a contract on your new home, we will immediately list your current home for sale.
Pro Tip: We may be able to negotiate a longer closing period to give you extra time to sell your home and coordinate the transition.
Option 2: List Your Current Home First
In this scenario, you list your home first, and once you’re under contract, you put in an offer on a new home. This method helps ensure you’re not left carrying two mortgages.
Pro Tip: You can hack the timing by negotiating a longer closing period or even a rent-back agreement, which allows you to stay in your home after closing while you finalize the purchase of your new home.
Option 3: Use a Bridge Loan
A bridge loan is a short-term loan that allows you to pay off your current mortgage without needing the proceeds from the sale of your home. Once your home sells, you then use those proceeds to pay off the bridge loan.
Pro Tip: A bridge loan lets you buy your new home before selling your old one, offering flexibility in a competitive market. However, these loans come with additional requirements, so it’s important to explore whether it’s the right option for you.
While this process might seem stressful, I’m confident we can navigate it seamlessly together. If you’re considering making a move and want expert guidance, let’s talk about the best strategy for your situation.
Click [HERE] to get started or schedule a time to chat. As always, my inbox is open for any real estate questions or needs!
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