Selling your old home and buying a new one is similar to a balancing act. However, with the right guidance and information, it can be done. There are a few complex steps and processes that you need to be aware of to save valuable time and money.
Our real estate agents have put together a guide to help you buy and sell a home simultaneously:
Buy a home first
If you’re in a situation where you can own two homes at one point and find a lender who will qualify you for it, you might want to go ahead with buying first. This isn’t the most popular choice among clients, but it’s definitely a possibility.
Part of qualifying with a lender is proving that you have 6 months’ worth of payments for both homes in your bank account. You should also be able to pay the down payment and closing costs.
Time it well
When you’re ready to close your home’s sale, you might be able to delay the process and put an offer on a new home without the contingency to sell. Once the buyer of your home is approved by a mortgage lender, you can be certain of the sale going through.
You can put an offer on a new place when you’re confident about the sale. However, this only works if the buyer is willing to allow this leeway.
Sell your home first
This is definitely a less stressful option since the risk is lower. When you sell your home first, you can plan the finances better and avoid buying a new home for more than you can afford. The drawback of this option is that you have to move out when closing, which means you need to live and store your belongings temporarily for a while.
Some home seekers invest in a storage unit while they live in a hotel or with friends and family. However, if you have kids and pets, this option may become difficult. Renting a home on a 30-day agreement is a better choice for larger families who are between houses.