Sell Your Home and Buy a New Home
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Sell your home and buy a new home.
If you currently own a home and would like to sell it in order to buy a new home, we will guide you through the process and help you understand your options. There are usually three different scenarios related to selling your home and buying a new one:
1.) You want to sell your home first, and then buy a new home.
This is typically the easiest way to qualify for the new home purchase since you will not have your current mortgage factored into your qualifying debt-to-income ratios. Additionally, if you have equity in your home that money can be used for your down payment on your new home.
2.) You want to try to sell your current home and buy a new home simultaneously.
While this may seem like the most appealing option there are a lot of potential difficulties and hurdles that you may face. Even if you already have a buyer for your current home, and have decided on a new home, there is no saying that your current buyer won’t back out or lose their financing. Also, in order to secure financing for your new home purchase, you will have to have the necessary debt-to-income ratios to qualify, and also the required down payment in place in case the current home doesn’t sell.
3.) You want to buy your new home and then sell your current home afterwards.
The advantage of this approach is that you will not have to wait for your current home to sell prior to buying the new home. This will allow you to move into your new home right away, and you won’t be in jeopardy of losing the new home that you may have your sights set on if someone else were snag it before you do while you wait for your current home to sell. The downside to this approach is that unless you have strong income and assets you may have difficulty qualifying for a second home mortgage. Also, if your current home were to take a long time to sell you would be stuck with two mortgages.
Regardless of what your intended approach is in regards to selling your home and buying another, we will help you know what options exist for you to meet your goals. Get expert advice and speak with a home loan specialist today.