Against the backdrop of our challenging market right now, I’ve been asked this question time and time again: How do I buy and sell a home at the same time?
Today I’ll go through a few steps that should be helpful for those looking to sell their current home and buy a new one all at once.
Before you do anything else, you need to obtain a pre-approval letter from a lender, which will allow for your budget to come into focus. Without one, you won’t know exactly what you can afford. It’s also a must-have once you find the right home. When that happens, you’ll need to show the seller your pre-approval letter to demonstrate the strength of your offer.
Secondly, get your home on the market immediately to advance your position and draw prospective buyers’ eyes to your property.
Starting from the time you find the home you’re most interested in, there are three approaches you can take:
“Before you do anything else, you need to obtain a pre-approval letter from a lender, which will allow for your budget to come into focus.”
Buy your next house first and sell your current one later.
Sell your home outright, find temporary housing, then buy your new home.
Close on your current home and purchase your next simultaneously.
There’s a chance you’ll have to include a contingent sale clause in your contract with the seller, and they might ask for a concession known as an escape clause. This gives that particular seller an out in the event that they receive another offer that doesn’t come with a contingency clause.
To help that along, one loan product you can speak about with a lender is a bridge loan, wherein you’re able to take the equity out of your current home and purchase another under a blanket, interest-only loan. Be sure to contact me if you’d like more information on this.
For any other questions related to today’s topic, bridge loans, or anything else with regard to real estate, please reach out to me. I hope to hear from you soon!