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Preston Ware's Blog

By Preston Ware | Mortgage Broker
or Lender in West Palm Beach, FL

Simultaneous Selling and Buying

There are people who buy and sell real estate for a living, we call them investors. That is their job.

Most homeowners usually end up selling and buying their homes because they have to move. We call this life in Florida.

A customer who needs to sell and buy is a customer who has his or her equity wrapped up into their current home and they would like to transfer that equity to a new home as the major down payment. Typically these customers are young to middle age families which is the bulk of my business. This can be a very trying experience for anyone so it is my job as your mortgage banker to use my 20 years experience to spot any potential pitfalls as early as possible.

This is where I come in. It is my job to act as your coach and trusted advisor to make sure you have your ducks in a row and are prepared so that you can make a smooth and easy transition.

There is something inherently nerve racking about having your entire life's possessions packed away in a moving van with no place to go until your loan closes. Trust me, I have been through this with many customers and we always prevail.

Here are some tips if you are selling and buying real estate :

  • Prepare early, that means getting your mortgage financing lined up way early.
  • Give yourself plenty of time on your contract. e.g At least 45 days.
  • Put a contingency in your offer so you will ensure you are not homeless if your buyers loan falls through.
  • Give yourself a comfortable window between selling and buying, Don't assume you can do this the same day.
  • If you plan to rent out your current home top offset your current payment, make sure you can prove you have 30% equity in your current home. those are our guidelines.
  • Get your automated underwriting done early and read the findings for red flags.
  • There are no bridge loans available anymore.
  • Lean on family if you can.
  • Use my experience to coordinate the closing and monitor the details of the transaction.

It is important to keep in mind that a real estate transaction is complex and there are many factors that can throw a wrench in your timing so you have to protect yourself. A typical real estate transaction involves the work of as many as 43 people participating from 14 different lines of work. If one or two of these people drop the ball, we have to be prepared to adapt and overcome.

Preston Ware
Mortgage Banker

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