Home Buying in Glendora>Question Details

Juan, Home Buyer in 91764

I want to purchase a new home while selling my current home. I have a few 100K equity in my current home. What is the best to go about this?

Asked by Juan, 91764 Tue Nov 23, 2010

I would like to purchase a new home at the same time sell my current home in which I have approximately $400,000 in equity established. I have very good credit and some money saved. Is there a somewhat easier process that I can look into?

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Answers

14
As long as you can qualify with both housing payments you can do this.
0 votes Thank Flag Link Wed Jul 31, 2013
Although it's tempting to look around for awhile to see if there's any properties out there that fit your list of needs and wants / don't wants, that can be risky. What if you found your dream house, but before you could get loan approval (which is demanded by sellers to be included nowadays when submitting an offer), it get sold to someone else? It's really best to get pre-approved (not just pre-qualified; there's a huge difference). Then, start looking. When you find your dream house, you're ready to submit an offer. Any contingencies can reduce the acceptance of your offer. Keep in mind that you can put into the sales or purchase contract that you want to rent back for a certain number of days or weeks. So, if the sale of your home, and the purchase of your next home don't exactly match, you'll buy yourself some time.
0 votes Thank Flag Link Wed Jul 31, 2013
Without reading any one else's answers first - my initial reaction was that you should talk to your lender to see what your ability to purchase a new home and carry both the new and the current should the current not sell in todays market - If you have $400K equity than you probably live in quite a higher end home - which in today's market takes quite a bit longer to sell.
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.
Web Reference: http://www.leahlayman.com
0 votes Thank Flag Link Thu Nov 25, 2010
Make sure to list your property with a local agent, and make sure the wording " Contingent on home seller finding home of choice within 60 days" If you do not find a home of choice, both you and the buyer of your home can extend the 60 days or cancel.

Dermot O' Reilly.
San Fernando Valley CA 91367
818-888-1717
0 votes Thank Flag Link Thu Nov 25, 2010
Juan,
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.

Good Luck!
0 votes Thank Flag Link Thu Nov 25, 2010
Hi Juan:

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.
Diana 909-560-0145
Web Reference: http://www.dianam.com
0 votes Thank Flag Link Tue Nov 23, 2010
The most common way is to sell your home contingent upon buying your new home. Some sellers do not like to get offers like that in this market, so realize that you will be looked upon as a more risky buyer. My suggestion is to price your home right and you should get an offer quickly. You can explore the bridge loan route a couple people have recommended, but I think it has become very though to get and will cost you several thousand dollars. Since your objective is to sell your home, why not invest the money there.

Best of luck moving into your new home.

Please feel free to visit my website and sign up to receive up to the minute pricing and market trend information for the LA area.

Best Regards,
Catherine Bedrossian
Home Sales Pro
(310) 383-4212
catherineb@socalhomefinds.com
http://www.socalhomefinds.com
0 votes Thank Flag Link Tue Nov 23, 2010
Juan,

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.

Blessings,

Gary R. Edmonds
Southland Properties.
626-827-4477
email: GEdmonds@SouthlandProperties.net
Web Reference: http://www.garyedmonds.com
0 votes Thank Flag Link Tue Nov 23, 2010
Hello Juan,

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!

Trinidad Gaeta
Remax Realty 100
626-552-8637
0 votes Thank Flag Link Tue Nov 23, 2010
You can put your current home on the market while you look for a new home. You will have to qualify for a loan on your purchase if you find something before you current house sells. Otherwise wait for your house to sell and then apply for your loan on the new house.

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.
0 votes Thank Flag Link Tue Nov 23, 2010
If you want to buy and sell at the same time, it can be a very easy process. If you're looking to buy before you sell your home, it'll be a bit more complicated (to get the loan). Either way, it should be a fairly seamless process if you're working with a good REALTOR and Lender. You'll go about buying and selling almost the same as anyone else with just one caveat. You'll be making an offer contingent on your home selling i.e. if you're home doesn't sell, you're not bound to buy that other home. Like I said, it's as simple as additional language and forms and making sure that the Buyer of your home and the Seller of the home you buy are all on the same page with you. Let me know should you have any further questions.
0 votes Thank Flag Link Tue Nov 23, 2010
Its a delicate balancing act. You have to be able to find the right home to buy and at the same time find the right buyer for your home. A qualified Realtor like myself can help you identify many replacement homes and secure just the right one, while at the same time, helping you get maximum value for your home.

Richard Schulman
#1 Listing and Selling Agent
Keller Williams Westside
310-482-0173
schulmanrd@yahoo.com
0 votes Thank Flag Link Tue Nov 23, 2010
Juan,

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.

Good luck,


George
Web Reference: http://www.georgelewman.com
0 votes Thank Flag Link Tue Nov 23, 2010
Hi Juan,
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.
Happy Thanksgiving
Web Reference: http://ocnorth.com
0 votes Thank Flag Link Tue Nov 23, 2010
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