At this point, you’re well-versed on the process you’ll encounter when buying and selling at the same time. The next phase of your planning will focus on making the financials of the two transactions work.
There are a few different scenarios you might find yourself in.
- Your current home is paid off, and you have enough funds available to pay for the costs associated with your new home. If this is you, then your journey may be pretty straightforward. You’ll work with your real estate agent to find a new home and your lender to handle the financing. Then, either during or after the purchase, you’ll list your previous property.
- Your old home is paid off, but you need to utilize the equity you have in it to pay for the down payment and closing costs of your new home. In this scenario, you could take out a home equity loan, or use a short-term financing tool like a bridge loan, to provide access to temporary funds which you’ll repay after selling your home.
- You still have a mortgage on your previous home, and you need to tap into your home equity to finance your new home. This is another situation where a bridge loan might be the right option to help you afford the costs of buying and selling at the same time with access to temporary funds.
While not every homeowner will fit into these circumstances, they cover the majority of buyers purchasing a home and selling their existing one at the same time. And for any more nuanced situations, your loan officer can help you decide on the perfect plan to support your goals.
Source:https://fhmtg.com/2021/12/02/how-to-sell-your-house-and-buy-a-new-one-at-the-same-time/
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