I would never advice any one to purchase a home whilel waiting for another to sell - but I shouldn't give advice about your finances - I would recommend you speak to your accountant and your lender and then go to the best realtor you can find to LIST the current property to sell first! Then look for your new home when you have a contract on the current. Any one who gives your financial advice vs. real estate advice is going outside of their expertise. I hope this helps.
Dermot O' Reilly.
San Fernando Valley CA 91367
Great question. It is somewhat going to depend on where you stand currently. Have you just decided to move? Have you been looking for homes and found one you just don't want to let get away?
This process is very do-able, depending on what your specific needs and goals are. From my understanding, and I could be wrong, bridge loans are most typically used in cases of homeowners wanting to sell then build a new home.
Typically listing your home first, accepting an offer, and then searching for a home is the easiest way to go about the process. I would recommend getting in touch with a Realtor in your area and come up with a plan of action.
My first question is do you need the equity from your home to purchase a new home? If you don't you may want to look into keeping the home that you have now, renting it out so that you will have income and purchasing a new home. There are a lot of unknowns to be able to answer your question properly. Are you down sizing or up sizing? I would love to sit down with you and talk over your options and then you will also need to talk to a lender to see what does work for you the best.
Give me a call so we can go over the options.
Best of luck moving into your new home.
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Home Sales Pro
I hope this finds you in good healh and Spirit.
There is a product that is still used but very tough to qualify for called a Bridge Loan.
The concept is its a short term loan to be paid in total at the close of escrow on your current home.
The issue is that you will have to qualify for the new mortgage, your old mortgage, the bridge loan and all other month debt (car payments etc.) to be under 50 percent of your current mothly income. Most people don't qualify.
The best practice would be to sell your current home with a purchase contingency which means that you will place your home on the market and when you receive and accept an offer it is under the condition that you find a suitable home to purchase. There are some draw backs to that but its best to get a better understanding of your situation.
You can also place an offer on a home contingent upon selling your current home. The idea is that when you place the offer it is contingent on you selling your current. If accepted you are given some time to sell your current and keep a home from getting away. There are some draw backs also to this that can be dicussed in detail when you contact me
Please feel free to call me if you have any questions either by email of phone.
If you are interested in learn more about your neighborhoods market condition you can always go to my website http://www.southlandpropertyvalues.com for a free market market report.
Gary R. Edmonds
First and foremost you want to make sure you get an accurate evaluation for your current home to determine the exact equity amount you will realize. Second, you want to make sure you can secure financing and this can easily be done with a preferred local lender. Once you complete these couple steps my suggestion would be to list your home for sale contingent upon you finding a replacement home and closing concurrently. Securing a buyer for your home will put you in a better position when it comes to negotiating for your next home. Depending on your needs for your next home an alternative option would be to purchase your next home first then sell but of course qualifying for your next home while still holding a mortgage on your current home will be key factor to this option.
The good news is Juan, you are on the driver seat given the equitable position you find yourself in.
Hope that helps you!
Remax Realty 100
Worse case senario is that you would have to carry two mortgages. Your current one and the one on your new purchase. For that, you could look into a bridge loan. This allows you (if you qualify) to purchase the new home until your current home sells.
#1 Listing and Selling Agent
Keller Williams Westside
Please ensure that when you list your home and begin your search for the new home, you allow time for your current home to sell and leave room for your equity to drop should you need to negotiate a lower sales price. Remember you will have Realtor and closing costs on both sides of the transaction. You state you have 100K and 400K of equity, which is it? No matter which, unless you can afford and want to carry two mortgages, you should make sure the purchase of the new home is contingent upon you selling your current home.
This process happens every day, so it can be done. It is a bit slow in most markets today but there are many motivated sellers out there. Some of them will wait with you as your home sells.
The process of selling a current home and purchasing another is fairly common. You list your house for sale and make it contingent upon the purchase of a new home. The purchase of you new home make contingent upon the sale of your existing home. Get preapproved for a new loan amount. Have a realtor crank the numbers of the sale and the purchase so you understand the financial net result. List your existing home and start shopping for a new one.