Buying and Selling at the SAME TIME FAQs
What to do if you do not qualify to finance a purchase until the sale on your first home closes?
If your income isn't high enough to qualify for a second mortgage before you sell a property, you'll have to sell your old home before you buy a new one.,,,but there are many options.
OPTIONS- Simutanious closing(s) which means your relator works with the realtor representing the BUYER of your home and the realtor representing the SELLER of the home you are buying. This will take skill and finess for all 3 of the realtors and the families involved. It can be done with things like post occcupancy, rent backs and other creative options professional realtors know how to negotiate.
OPTION - Rent-back agreement
If you decide to buy first, you have the option to sign a rent-back agreement and allow the seller to live in your new home for a certain period. In return, the seller will give you rental payments.
OPTION - Sale contingency
You may have to put in an offer on the new home with a settlement contingency. It means your offer is contingent on your current home selling by a specified date. List your present home at the market, and start looking at suitable properties to buy.
OPTION - Sale and settlement contingency
If you’re worried that your home’s going to be sold quickly and you’ll fail to pick another for buying soon, you may choose to buy your home first.Pick a home and then initiate an offer with a "sale and settlement contingency." It means the offer you’re making is contingent upon your present home selling.
OPTION - Temporary rental home
You can look for a temporary rental home and live there while searching for a new home to buy. This option will be useful if you’re in need to sell your home first and can’t get a bridge loan, borrow from an IRA or 401K or get a HELOC.
How can I buy a house if I need to sell the house I am in to afford a down payment?
Several financial products can help you tap into your home equity or buy a new home while trying to sell your old one. For example, you can look into bridge loans, home equity loans, home equity lines of credit (HELOCs), and borrowing from your 401(k).
Can I put an offer on a house if mine has not sold?
You can put an offer on your house if your old one has not sold, but you'll want to get pre-approved for a new mortgage first. In some cases, however, a lender will pre-approve you for a new mortgage with a sales contingency. This means you can only buy a new home if your old home is sold first.
Do you have more questions for me? Give me a call 402.215.1529 and let us discuss your unique situation. Angela Peters 402.215.1529 The Home Girl, Keeping it... real esate.