Want to Buy Another Home?

By
Mortgage and Lending with Orion Mortgage, Inc.

Think you might want to buy another home?  Do you have substantial equity in your present home?  Consider a Home Equity Line of Credit to make the equity in your present home available for a down payment on a new home before you sell the old home.  Buying the new home before selling the old home will typically require the purchaser to have enough documented income to cover both payments.  Many people with small mortgages have the income to qualify for a larger mortgage without selling first.  Your mortgage broker can easily tell you if this would work for you.

With enough equity in the old home, it may be possible to buy and remodel a new home before selling the old home.  This works just like above, except the buyer uses a smaller down payment and retains cash for the fix up.  They then have the ability to buy, remodel, move in, and then sell the old home.

Comments (2)

Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

I think this is a little risky right now.

Sep 23, 2009 05:14 AM
Don Opeka
Orion Mortgage, Inc. - Arvada, CO

Yes, there is always risk.  The greatest risk is in realistically assessing the value of the properties and the costs involved.  Our market is strong for the sale of lower priced homes and very weak for higher priced homes.  It can be a good time to move for the person who wants to move up and live in a bigger home.  It would be very risky if the move up was based on being able to sell the higher priced home for a quick profit.

Sep 23, 2009 06:58 AM