Hello, fabulous homeowner! You've been living in your cozy nest for a while now. But, like any ambitious bird, you've got your eye on a bigger, better branch. And who can blame you? Upgrading your habitat is the American dream! But a question looms: Can you snatch up your dream home before letting go of your current digs?
Let's dig into it (we promise, no heavy jargon ahead!).
The Upsides and Downsides of Selling First
Upsides:
No balancing act with two mortgages at the same time (whew!)
A fatter cash pile for your new home's down payment (cha-ching!)
You'll know exactly how much green you've got to play with for the new home.
Downsides:
In a hot seller's market, your dream home could slip through your fingers.
You could end up between homes and have to crash at your in-laws' (gasp!)
In a rising market, home prices can zoom past your budget faster than you can say "mortgage."
Can You Really Buy Before Selling?
Let's cut to the chase: Yes! If you've got a heart set on buying before selling, there's hope. Here's how to tackle the two most common challenges:
Challenge #1: Juggling Two Mortgages
Don't panic, we've got a couple of neat tricks up our sleeves:
Plan A: Turn your current home into a rental after buying a new one. We can use 75% of the future rental income to offset your housing payment. Neat, right?
Plan B: Get your current home listed ASAP after your new home offer gets accepted. We just need a non-contingent offer or buyer contingencies waived before the new home closing. And voila, your current housing payment won't mess with your debt calculations!
Challenge #2: Qualifying With Less Than 20% Down Payment
With your current home not yet sold, the 20% down payment on your new castle might seem like a giant mountain. Don't worry! We offer a 10% down payment loan (subject to underwriting guidelines, of course). No need to gather 20% upfront, even if you've set your sights on a posh pad!
Wrap Up
So, if you've been wondering, "Can I buy a home before selling my current home?" the answer is, "Absolutely!" And if you need a helping hand or have any questions, don't hesitate to reach out. We're here for all your mortgage and real estate needs!
Until next time, happy house hunting!
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Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2024 ML Mortgage Corp. All rights reserved.