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Gary Kunich, Home Buyer in Kenosha, WI

Best advice for selling a house and buying another? Do people take out two mortgages? Is it best to sell first?

Asked by Gary Kunich, Kenosha, WI Wed Jun 2, 2010

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Gary,

I'm in agreement with Eric but it really all depends on your financial situation. If you can purchase without having a home sale contingency attached to your offer you have fantastic buying power right now and should get a great deal on whatever home you pursue. On the flip side when it comes time to sell you unfortunately will probably not get as much as you want or think you will get.

The lending institutions have tightened and it is difficult (not impossible) to get a bridge loan or second mortgage, even if well qualified. I would suggest your first step be to obtain a market analysis on your current home to find out where it might sell. Then sit down with a lender and go over finances and see where you stand.
1 vote Thank Flag Link Wed Jun 2, 2010
I agree with the first answer. You can also get an equity loan from the house you own and pay it off at the closing. There will be a pre-payment penalty, but that is worth it.
1 vote Thank Flag Link Wed Jun 2, 2010
It is best if you CAN sell first as far as cost and smooth transactions. You can certainly negotiate better when you are buying if you don't have to sell a property first. Getting a FIRST mortgage these days is not the easy going that it was just a couple years ago. The pendulum has swung!

You can take out two mortgages. People do it a regularly for second or vacation homes. You will just have to qualify for the second mortgage just as you did for the first. But, you'll still have the first, so you need plenty of income to support 2 mortgages.
1 vote Thank Flag Link Wed Jun 2, 2010
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