Can you buy without selling your home?

These are questions many people ask – what are the options when I want to buy a new home? Do I have to sell first? Should I sell first? What if I can’t find a new home? Help! What do I do?!

When you decide you want to buy a new home, there are some answers that will help determine how you go about selling your home.  For many, there is only one option, you need to sell your home before you can buy the next one. However, if you can buy first, it may make it easier!  With many homes selling within a couple days, it’s hard to buy a home when you have a contingent offer (meaning you need to sell your home to close on the new one).  However, it does happen!  Some people decide to sell first and hope they find a new home, others list their home for sale but hope to be able to find something to buy and close at the same time.

For those that are able – buying a new home and even closing without selling makes their life a bit easier. It means you can take your time moving into the new home, maybe paint or recarpet before moving in.  But how do you do that? Truly it’s as simple as qualifying – can you qualify for both home payments?  If you can do that, it’s an option.

The second part is do you have the money for the down payment without selling your home?  If you have some money in your savings account, this can work – or do you have a home equity line of credit on your current home? That allows you to use the equity in the current home for you down payment. Then when you sell your current home, you pay off the line of credit. Another option is a 80/10/10 – this means a 80% first mortgage, a 10% second mortgage and 10% from your own money.  This eliminates the mortgage insurance and you can pay off the second mortgage when you sell your home. Some people may take a loan out against their retirement account knowing they are going to pay it back when they sell.

Talk to your lender and your realtor and decide which is your best option. If you have the ability to buy without selling, it may make it easier to get your offer accepted on the home you want to buy!

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website