The short answer is: Yes, you can consider buying a new house before selling your old one.
While selling your old house first will give you the resources you need to buy your new property, market conditions may not always be ideal for selling your current house.
That should not deter you from buying a new house if that is what you want for your family, if you aspire towards a particular lifestyle, or if you want to move to a new location. Here is what you can do to buy your new home before selling the old one.
Try looking for a property through a reliable real estate agent. Not only will they curate houses for you that match your lifestyle and your budget, but they will also guide you through the financial aspect of buying a new home. They can help you with the home documentation, and you can also sell your old house to them when the time comes.
If your finances permit, you can qualify for a second mortgage. That means you will have to start making the monthly payment for your new home in addition to the old one. Be absolutely sure that you will be able to keep up with the monthly payments until you can sell your old property to avoid foreclosure.
You can add a clause to your contract while buying your new home that says you will only go through with the final purchase once your current property is sold. Not all sellers will agree to it, especially if they want a quick and streamlined transaction.
However, you can ask your real estate agent to speak to sellers who would agree to a delayed sale and are not in a rush to sell their homes. In the same way, you can also ask for a delayed closing on your new property.
A bridge loan is a short-term loan you can opt for to bridge the gap between buying your new home and selling your old one. Once you have sold your old property, you will have the money to pay off the loan.
However, you do need to consider your finances for the bridge loan because they have higher interest rates than traditional home loans and do not have tax deduction benefits and other perks.
Savings are for emergencies. If you need to buy your new home before selling your old one, then this is an excellent time to spend some of your savings. Of course, this should be your last resort. You must quickly refill your savings fund as soon as possible, especially if that fund was meant for a specific purpose like your retirement or your children’s college.
Buying a new home before selling your old one can be difficult, but not entirely impossible. What you need is lots of careful planning and an agent who will ensure that you can meet your parameters without any difficulty.
At Lauren Michaels Real Estate Partners, we make sure that our clients find their perfect fit when it comes to luxury real estate investment. Your dream home is one of your most significant investments, and we ensure nothing goes wrong when you finally set your eyes on it.
We have listings from all the major locations for any style of home you may be looking for.
Call us today for a quick consult and tell us what you are looking for in your dream property, and leave it to us to make it a reality for you.