For many people the nightmare of selling one home to buy another is one they wish to avoid. Even though they do want to move to another home they don’t want the hassles that come. Realistically they know they must sell the first one to be able to buy the second one. The last thing they want is to end up with two mortgage payments to cover.
One the other hand though they don’t’ want to sell their current home and then struggle to find another one before the closing date. Then they won’t have anywhere to go and that creates another hassle. Even if you are able to get an apartment or a hotel for a few weeks you still have to move twice. Most of us will agree that process of moving once isn’t something we want to do – so doing it twice in the span of a month or two is out of the question.
It isn’t always a great time to sell a home and you do need to be aware of that. If there are tons of other homes on the market right now that aren’t selling then it could be difficult for you to sell yours as well. It could be because of the economy or other factors in your area. Find out what the scenario is before you leap into putting your home on the market.
Many lenders though do want to help people out in such a predicament. If you have decent credit they may extend what is called a bridge loan to you. With this you will get the funding you need to buy the second home even though the first one hasn’t closed yet. The lender will get their money due when the closing date occurs with that first home.
This way you can get your home sold and still buy one that you are going to move into. The requirements for bridge loans vary based on the lender so explore what may be extended to you. One requirement is that you have to be able to show you have enough income to pay for the mortgage on both homes. You also should know that this type of loan often has a high rate of interest with it.
The good news is that people sell one home and buy another all the time. It can take some careful planning to make sure you don’t end up with some problems along the way. If you have never done this before get your real estate agent to help you. Working with one person to help you sell your current residence and then to buy another is the best option.
By doing so you will be able to ensure they do their best to get all of the dates to line up. They can also add stipulations to offers you make on the new home that state you must sell your own home before it is going to continue moving forward. This type of stipulation is more common than you might think.
Don’t feel like you are stuck in a home because you need to sell it before you can get another one. Work with your real estate agent to get the home ready to sell. Offering it at a great price will also help to get that done in less time. While that is all going on have a good idea of what you want in another home. That way you can explore what is out there as soon as you get a bite on the home you are in.