What is the process when you are trying to sell your place and buy a new place in terms of getting a mortgage and how to even start?

Asked by hello_noky, 60622 Sun Jan 19, 2014

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Manuel Brown, Agent, Chicago, IL
Mon Jan 20, 2014

Mary Kay Laurent with Guaranteed Rate is great. I send all my clients to her. Work with her she is GREAT!
1 vote
Mary Laurent, Mortgage Broker Or Lender, Chicago, IL
Mon Jan 20, 2014
Hello Noky,

You really need to understand how you stand financially, if your DTI (debt to income ratio) can qualify with 2 mortgages or if you have to sell first and then purchase. A lot of buyers/sellers have been able to balance this - sell their home one day and purchase a home shortly after - it is tough to do however have done this a number of times with borrowers. I would be happy to review your situation with you. Please call me at 773.516.6859 to discuss.

With warm regards,

Mary Kay Laurent
Associate Vice President of Mortgage Lending


o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
1 vote
Jacques Guer…, Agent, NEW CITY, NY
Sat Feb 1, 2014
First thing would be to speak to a mortgage lender to see what you can afford to buy.ask what kind of home you looking for ,how many bed ,what area,and then my jod is line up some home to preview
0 votes
Jordan Gouger, Agent, Austin, TX
Tue Jan 28, 2014
If you are able to purchase a home first before selling your current home, then I would highly recommend going that route. You would need to speak with a mortgage lender to determine if you could qualify for another home without selling your current one. There are several reasons why I recommend this route.

When a living in a home that is actively being shown, you have to keep the home in move-in ready condition 24/7 and need to be ready to leave for a showing a moment's notice. What this means by move-in ready is that the house will have be kept clean all of the time, and most of your personal belongings will need to be in storage. Despite what the showing instructions say in the MLS, they are not always respected. Vacant homes are always easier to show than occupied homes and you will not need to interrupt your normal routine.

On the purchasing side of things, you are considerably less likely to have a purchase offer accepted on another home when you are submitting an offer that is contingent on the sale of another home. I am not too familiar with Chicago's market, but in Austin we are in such a seller's market right now, that any offer submitted contingent on the sale of another home will be flatly rejected.

As far as making the house ready to show, contact the toughest inspector you can possibly find and have them find everything that needs to be repaired. Anything that is structural, electrical, not-working, or is a safety hazard have a licensed contractor make the repairs. Take care of any deferred maintenance items that need to be done. Deep clean everything in the home. Clean the tile grout, steam the carpets, clean the cobwebs and trim. Paint as needed. Add mulch and colorful plants to the front porch. Cut the grass and trim the hedges. Lastly, if you decide to hire an agent, hire one that will answer their phone and has a marketing plan in place to sell your home.

Good luck with everything, and if this answer was helpful, please nominate it!
Jordan Gouger
Keller Williams
0 votes
Mike Opyd, Agent, Chicago, IL
Tue Jan 28, 2014
First thing would be to speak to a mortgage lender to see what you can afford to buy. Would be wise to get your agent or agents lined up as well to sell and buy. Have them walk you thought both of the processes.
0 votes
Chris Anders…, Agent, Powell, OH
Mon Jan 27, 2014
This is exactly why before seeing homes...as a seller or buyer...you must first get your financing in order. Will you be doing a bridge loan or can you afford to purchase a new home without first selling your current residence. For most buyers.....neither of these options make the top of their list. But financing is of the utmost importance when buying or selling a home. i.e. Do you owe more than the house will sell for on the open market? If so...can you bring the difference to closing. If not....you might need to hang tight until you can develop more equity in your current home.
0 votes
Jennifer Sah…, Agent, Chicago, IL
Mon Jan 27, 2014
First, find out if you have to sell your current property in order to buy a new home. You also need to get pre-approved by a lender. In the pre-aprroval process, they will tell you if you can rent out your current place or if you have to sell it first. From there, a good realtor will guide you with the rest.
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Research, Home Buyer, Chino Hills, CA
Mon Jan 27, 2014
Forget that. Get an appraiser, county certified, to find out what the value of the house it. Unless you sell for cash, appraisal is needed to get financing- for buyer to buy your house, real estate person counts for nothing.

Look at completed sales in the area, get a spread sheet, because the difference in my between "active listings" and real- or speculators driven- sales is 100,000.

Then decide what you want and can.
0 votes
Michael Graf, Agent, Colchester, CT
Mon Jan 27, 2014
Great question and thank you for asking! The best way to handle your situation is to first have your home listed. I would strongly recommend selling your home first and here is why. If you find a home you would like to buy and you agree on a price with the sellers but you have still not sold your current home you will be involved in a "Hubbard Clause." A Hubbard Clause occurs when a buyer has agreed to buy another home with a purchase and sales contract but they have not sold their home yet. Every agent will be privy to this information that you have a Hubbard Clause. This will ultimately lead you to a lower selling price on your home. SAVE A LOT OF MONEY and sell your home first then you can obtain a mortgage and find your next home. In the meantime it will not hurt to look. If you have any other questions feel free to contact me at (860) 984-6251. Make today a great one!
0 votes
Policegear, Home Buyer, Pompano Beach, FL
Sat Jan 25, 2014
One thing I see missing here, if you are selling a home in order to buy another. Absolutely, find a good agent, but if you have a present mortgage with a large lender, talk to them about a new loan for your new home. They will usually be able to pre-qualify you for a loan with less hassle and may even offer a "bridge" loan to buy your new house until you can sell your present one. They have incentive to keep you as a customer. Of course this all depends on your history with them. Oh, and seriously consider using a real estate attorney. They usually are very reasonable and can offer great advice on all matters.
0 votes
Mary McNair, Agent, Fairhope, AL
Fri Jan 24, 2014
First, get your home listed with a Realtor and have a realistic expectation about what you should be able to get for it. That amount is going to be partially determined by how quickly you feel you need to sell. Basically, why are you wanting to sell? House too big or too small? Can't afford it? Need to move? Want to move?

Once you determine your sense of urgency, you'll have a better feel about how aggressive you want to be with your asking price.

As for buying something else, the speed of being able to do so is determined by the same issues that have you selling. In addition, how much, if any, cash do you have on hand without selling your home first? Can you get an adequate loan for what you need without having to sell your home first?

If you need the cash from your current home to purchase the new home, you want to be sure you have a solid contract on your home before making an offer on something else so you can make the selling of your home a contingency on the new home contract. Some folks try to do this without their home being under contract first, but I always advise my sellers to not take on contracts with an open-ended "must sell it first" contingency because they could miss out on another buyer who can act faster while the home is off the market. Therefore, your ability to verify that your home is already under contract is going to give the sellers of the new home more peace of mind about taking a chance with your offer.

I recommend that you speak to a lender or mortgage broker to determine which loan programs you might qualify for. If you're over 65, you may be able to buy your new home with a reverse mortgage with a minimum amount down even while your current home is on the market. Basically, ask lots of questions until you feel you have a grasp on what scenario works best for your needs.
0 votes
Mariette Gag…, Agent, Hickory, NC
Fri Jan 24, 2014
Most sellers need the proceeds from their home to buy a new home or may not qualify to buy
another home without the sale of the home. Find a good Realtor and list your home for a reasonable price. Pricing is most important as you don't want your home to be on the
market for a very long time. The longer the home is on the market, the lower the sale price.
After you have listed your home, consult with a lender and get pre-qualified. You will know what
your loan amount will be and then find a good agent to help you search for a home in your price
and that will meed your needs. Start looking seriously for a home after your home is under contract. You can contract for a home with the contingency that you sell your home. Since your home will be under contract, a contingency may be acceptable to the seller.
A Realtor will guide you through the process. Depending on the lender and type of loan, it usually takes 30 days to 60 days for the loan process and closing.
0 votes
Chris Anders…, Agent, Powell, OH
Fri Jan 24, 2014
Best answer is begin the process of selling before you begin the home search process. Most sellers lin our current low inventory market prefer taking non-home sale contingencies in their purchase offer. A buyer who has at least begun the home sale process is 9 times out of 10 a much stronger buyer in the eyes of the seller. Negotiations will at least be easier especially if you already have a contract on your home for sale. The one exception of course is if the seller does not need to sell their current home and can carry an additional mortgage without selling their current residence.
0 votes
Santini457, Home Buyer, New York, NY
Fri Jan 24, 2014
If you live in a city that has StreetEasy.Com, you can try listing it yourself. If you must hire an agent, call a few to see if you can get one to agree to a five percent commission instead of six percent.

Clean and tidy your home. Get the kids toys, and personal photos out of the way. Make sure your bathroom is sparkling clean - with no used wash cloths or towels in sight.

Make your bed and cover your pillows and sheet with a nice bedspread or comforter.

Make sure your kitchen is clean - no dirty dishes. Unclutter your counter top.

Make sure there is no peeling paint. If you have cracked tiles, replace them.
0 votes
Thomas Eason, Agent, Satellite Beach, FL
Fri Jan 24, 2014
Contact a licensed real estate agent(s) and find one you are comfortable working with. Then trust him to walk you through the process of prepping your home, determining the correct selling price, and marketing strategy..
0 votes
Gene Sticca, Agent, Granite Bay, CA
Fri Jan 24, 2014
First, contact a Realtor to assist in determining the value of your current home. This allow for an estimate of your net equity or cash that you wish to invest in another property. Next, you would want to be pre-qualified for you maximum loan amount to purchase another replacement home. This is equally important as it is very discouraging to find your dream home only to be let down by the fact that it is beyond your current financial status. Most other homes after this type situation are usually a let down. After being pre-qualified, listing your current home contingent on finding a replacement would be the next step in the process. Next, working with your Realtor to determine the area and type replacement dwelling that meet your needs. The Realtor will use their time to eliminate those properties which do not meet your criteria, and show you the best available. This saves your time to do other things. Finally, your Realtor will handle all the paper work for both transactions.
0 votes
Valerie McGi…, Agent, Newburyport, MA
Fri Jan 24, 2014
First step , contact a REALTOR in your area with experience as all the rules are changing on how to obtain financing , pricing your home correctly and many other facets of the process they will be able to guide you through.
The REALTOR will provide you with choices on reputable and trusted Mortgage Officers/Bankers to help you more specifically to choose the best loan program for you , there are a multitude of options !
Those are the first few steps , keep all payments on current loans/ mortgages paid on time , don't over borrow before you decide to make a purchase and call today !
Good luck !
Valerie McGillivray
Bean Group - Newburyport MA
0 votes
Joelle van d…, Agent, Lake Lure, NC
Fri Jan 24, 2014
My advice would be to call a couple of active real estate agents and ask them what you should do to your present home to make it market place ready. De-cluttering, fresh paint and neat landscaping can make a difference of thousands of dollars!!

Call a couple of lenders and have them pull your credit report to make sure there are no problems. They can tell you what you qualify to buy. Having a pre-qual letter form a reputable lender is very helpful to have in hand once you are ready to buy!
0 votes
Alison Clay-…, Agent, Manhattan Beach, CA
Fri Jan 24, 2014
The best place to start is with a solid Realtor who can guide you through the sometimes emotional and complicated process. I help my first time buyers with a lengthy sit down from point A to Z. I have a wealth of resources and trusted team members from lenders to escrow to help every step of the way!
0 votes
Jodi Vermill…, , Westerville, OH
Fri Jan 24, 2014
First, figure out if you NEED TO SELL your current property in order to buy a new home. If you are not sure, fill out my online application: http://www.lenderohio.com and I can tell you. Then once you figure out the finance side, consult a realtor to dial in the timing and details to list your property on the market.

Please contact me directly with further questions. 614.212.6929

Warmest Regards,

Jodi McCoy Vermillion
(NMLS # 227336) (LO.021770.001)
A Full Service Mortgage Banker
735 Ceramic Place, Suite 220
Westerville, Ohio 43081
DIRECT: 614/212-6929
Cell: 614/206-1687
Fax: 614/300-2955
Loan Officer Assistant/Processor (Kristin): 614/212-6916
203K Coordinator (Tammy): 614/212-6954
Email: jodi@concordmg.com
Website: http://www.lenderohio.com
To Apply On-Line Click Here: http://www.lenderohio.com

My business is based on referrals. If you know anyone who might be purchasing or refinancing a home, I would be happy to help. Any referral would be greatly appreciated.

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0 votes
Mack Alsaidi, Agent, Chicago, IL
Tue Jan 21, 2014
I can link you up with one of my lenders who can better assist you. Please let me know if you would like me to do that.
0 votes
Ashley Pimen…, Mortgage Broker Or Lender, Lombard, IL
Mon Jan 20, 2014

You would need to get pre-approved by a lender. They will give you a professional assessment and let you know how much you qualify for. I work with over 40 different lenders, feel free to contact me if you have any questions about the process.

Thank you,

Ashley Pimentel
Market Place Mortgage
Lombard, IL 60148
Phone: (630) 217-7013
0 votes
Joe Schiller, Agent, Chicago, IL
Mon Jan 20, 2014
you do not do it on line, You come to our office and recognize that your dealing with a lot of money and a decision can be worth $10,000 .. it's not time to be sort of doing this- come to my office and sit down and learn..if I am not the best guy for you it's my problem not yours..
0 votes
Mike Kravitz, Agent, Chicago, IL
Mon Jan 20, 2014
There is a lot of details needed to answer your question completely. Yous houdl contact a Mortgage Broker though.

0 votes
Dirk Gould, Agent, Chicago, IL
Mon Jan 20, 2014
Because you have not provided any specifics, it is very hard to answer your question. That said, you should probably focus most of your energy on selling your current home first so that you don't get stuck with two mortgages. If you want to discuss details, I am always available to talk.
0 votes
Karen Feldman, Agent, Winnetka, IL
Mon Jan 20, 2014
you need to speak with a lender first off. You may need the proceeds from the sale to cover the purchase. If you need, I have weeded out the lenders in the last 24 yrs of real estate to some very good ones. contact me if you need names- no obligation.
Important things to remember when you do your transactions. Leave money aside for any unexpected fixes on purchase. When you list, always fix any damaged or broken items ahead of time. When it comes to inspection, the buyer will always triple the dollar amount required to fix it in their head. It makes you have a better negotiation stand as well. Coordinate the timing for closing to your financial needs. Hire a competent and seasoned professional to navigate you through this process. Staging your home is important also- a good agent can address this. above all, any well maintained home can sell all day long at a decent price- better than an unmaintained one at a lower price!
let me know if you need more pointers.
0 votes
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Mon Jan 20, 2014
Start by talking with a lender so you know what you are working with and what options are available. I would be happy to help.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
0 votes
Jill Murty, Agent, Mission Viejo, CA
Mon Jan 20, 2014
I think we're all pretty much on the same page with regard to contacting a lender to make sure you're shopping right for your next house.

The Realtor you select to sell your house may want to indicate in the listing that you may need a rent back of your property while you're in the process of buying your replacement property. Renting back while you purchase your new home will prevent you from having to move twice.

A rent back amount will often be equal to the buyer's monthly cost. In a very competitive market, the rent back may cost you a token amount like a dollar.
0 votes
Philip Sencer, Agent, Chicago, IL
Mon Jan 20, 2014
Just contact a few lenders to see what the loan process is. My web site has some lender references. Before you list your property to sell you should get a idea as to what it will be like finding your new place so have an agent set up a search for you based on the criteria you want to have. Go out and look at some of them and in a few weeks you will get a 'feel' for how easy or not it might be to find your new place. Even in the best situation it is not easy to coordinate the sale of one property with the purchase of another. It can work, but you also might need a Plan B>
0 votes
Howie Andron, Agent, Chicago, IL
Mon Jan 20, 2014
You will need to discuss your mortgage qualifications with a lender. Please contact Miz Ramadani at Sierra Pacific Mortgage. His number is 708 499 5626. He will review your current mortgage commitment, your personal financials, and discuss your vision for your next real estate purchase, and will give you an honest and comprehensive overview of how you should proceed. After that, please call me at 773 972 5333 and we can begin the process of selling your current home and purchasing the next. I am also available via email at howie@markallenrealty.com.

I look forward to working with you.
0 votes
Andrew Luett, Mortgage Broker Or Lender, Chicago, IL
Mon Jan 20, 2014
Great question. With property values rising and mortgage rates still very low it may now make sense to sell then buy. The first step would be to work with a Loan Officer that could guide you through the pre-qualification process (review your credit, income, assets & property). You would be able to discuss and evaluate your financing options to help determine what the next steps are from there.

Please contact me for a free, no obligation mortgage consultation if you need further assistance or have any more questions.
Web Reference:  http://www.luettmortgage.com
0 votes
Jacqueline S…, Agent, Chicago, IL
Sun Jan 19, 2014
Start with a good agent who specializes in the area(s) you are trying to buy and sell in. If the areas are not closely related, you may want 2 agents, as real estate is local.

The purchase contract could be written with the closing contingent on you selling your current property. This makes accepting a contract a little less attractive to the seller of the property, especially of the property has other people interested in the property.

You could get a bridge loan to help manage the purchase when you are still trying to get rid of the old home. I would suggest talking to several mortgage brokers about your options.
0 votes
David Hanna, Agent, Chicago, IL
Sun Jan 19, 2014
As Matt said, it all starts with the money. Know what you owe now, about what you are selling is worth, and be ready to talk in depth about your finances.
A good Realtor can be a great guide and show you how to make this happen.
0 votes
Matt Laricy, Agent, Chicago, IL
Sun Jan 19, 2014
Best place to start is to speak with a lender. They will be able to tell you what you can and cant afford.

From there, get a good Realtor to help you out.
Web Reference:  http://Americorpre.com
0 votes
Alexander Ro…, Mortgage Broker Or Lender, Chicago, IL
Sun Jan 19, 2014
First off, get pre-approved for the purchase mortgage on the new home. You then will know where you stand before selling your existing home. Qualifying with both debts or just with the new mortgage is key to know. This way you know of you have to wait until you sell your home.
Work with an experienced and trusted mortgage banker that can lead you into the right direction.

Feel free to contact me anytime.
Alexander Romo
Senior Vice President Mortgage Lending
Web Reference:  http://www.AlexanderRomo.com
0 votes
joy.r.sinegar, , Chicago, IL
Sun Jan 19, 2014

The first step is speaking with a realtor to find out how much you could price your current home for. Then, you would speak to a lender to get pre-approved.

If you need the sale of your home to go through before you buy another home, you probably should get your home on the market right away. If the sale doesn't affect you buying a home, you can wait until after you've found your new home to list the old one. That way your transistion will be smooth.

Joy R. Sinegar
Sr. Loan Officer
Charter One Mortgage
0 votes
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