Have you been looking to buy another house before selling your current one?
This can be a tricky situation to maneuver in. You want to ensure you’re purchasing a home you’ll be happiest in rather than spending your time and money in two locations.
Yet, with the proper research and a bit of patience, you can certainly do both successfully. If you’re wondering how to buy another house before selling yours, we’ve got you covered.
Here’s what you need to know. Continue reading!
Talk to a Lender
A lender can review your credit score, income, current debts, and other financial information to ensure you can afford the house and possible extra costs. They can develop a plan and make recommendations to help you reach your goal.
A lender can inform you of potential risks in buying a house before selling yours. Knowing this information is useful when deciding whether to buy a new home or wait until you sell the old house.
You may also check homes for sale from this website for the best option when selling your home.
Contingent Offer
A contingency offer is a real estate offer dependent on something, selling an existing home. It allows buyers to buy a new home without dealing with the existing one.
Buyers should speak to their real estate agent about the process and the best way to use a contingency offer. They should also determine how much extra they can spend on the new property and line up a pre-approval from a lender.
Savings and Emergency Fund
Savings and emergency funds can be invaluable for repairs, closing costs, or other unforeseen expenses. Build up your savings by setting aside a small part of each paycheck to ensure you have the necessary funds.
Build an emergency fund if any unexpected costs arise from selling a home or purchasing a new one. These funds will provide a cushion and peace of mind when making a big financial commitment.
Consider Renting
Renting a place while you wait for your current property to sell is one workable option to consider when buying another house before selling your own. It allows you to keep the costs low while you search for a new home that meets your family’s needs.
You’ll need a longer timeframe to locate and buy another home, rent for a few months, and line up the sale of your current home. Ask local realty agents to find you excellent and affordable rental options.
Ensure you also get a good contract that only binds you for a short time, in case you want to buy the new place sooner or can cancel the contract if the sale of your current home doesn’t materialize. Be sure to understand your rights and other options when considering renting to buy another home.
Guide on How to Buy Another House Before Selling Yours
You now know how to buy another house before selling yours. Doing so can be rewarding, especially if you can buy a prime real estate investment and rent it out.
Take the first step today and research the market and mortgage rates to find your perfect next home!
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By HomeLight