Do you know the best way to go about selling a home and buying a
new one so that you won’t get stuck with two mortgages?
It’s best, where
possible, to put your home on the market early enough so that you won’t be
caught in a two-mortgage situation. That way, should you sell your old home
before you locate a new one, you can:
- Ask your buyer to settle on a mutually-convenient closing date that allows
you more house-hunting time.
- If an earlier closing date is unavoidable, you might be able to sell, then
rent your home back from your buyer until you find a new home.
- If your buyer must move in before you find a new home, you can rent a home
in the area where you’re house-hunting.
If, on the other hand, you
must buy a new home before you’ve sold the old one, one of these interim methods
may tide you over:
- If the seller of the home you want to buy agrees, you might be able to make
your purchase contingent on selling your old home within a specified time. Under
these not-ideal circumstances, the seller may agree only if the home can
be kept on the market while waiting for you to sell yours. If the seller
receives another offer during this waiting period, you may be given the
opportunity to meet the new offer or bow out.
- If you have a purchase contract on your old home, but the closing date is
some time off, you might take out a bridge (or swing) loan, using the equity in
your old (and also, sometimes, in your new) home as collateral.
- If you have accepted a transfer offered by your employer, you may receive
programmed relocation assistance, which will probably cover a portion of the
costs of selling your old home and buying a new one (including a bridge loan of
some sort). Your company may engage a third-party relocation management company
to sell your old home.If, however, your company has no relocation program, it
may still assist you with the financial aspects of your move.
Each
selling/buying situation is unique. If you are uncertain about which steps to
take, let’s talk things over. Our experience can help you decide what to do,
when and how.
No comments:
Post a Comment