If you’re considering buying your next home, you’re what we like to refer to as a move-up buyer. Many of our clients buy their first home and live in it for a handful of years. Then, as their family expands, decide they either need a larger home or one in a different neighborhood.
The most common question we get from our move-up buyers is this: How do I sell my current home and buy a new home at the same time? The answer is, there are a lot of ways to go about selling and buying at the same time, each with its own set of pros and cons.
So, if you’re considering buying your next home, keep reading for your options on how to go about doing so.
Close On Same Day
In a perfect world, all of our clients would be able to close on their current home and new home on the same day. Unfortunately, that isn’t always possible. However, there are a few tricks to help encourage this.
Many of our buyers add a contingency when they make an offer on a home that states they will buy the home as soon as they find someone to buy their current house. Depending on the housing market at the time, sometimes sellers refuse to accept these offers because there’s no way to know how long they’ll have to wait for the buyer’s house to sell.
If a move-up buyer finds someone to purchase their existing home before they find a new home, they will sometimes try to negotiate for an extended closing period to give them a little extra time to find a new house. However, buyers aren’t always willing to wait more than the typical 45-60 days it takes to close.
Buying Before Selling
If you end up buying your next home before selling your current one, you’re agreeing to pay both mortgages until you’re able to sell your home. Here at Mortgage Specialists, we offer a service called recasting. With recasting, once you sell your existing home, we’re able to apply the lump sum from that sale to your new loan and lower your monthly payments.
Selling Before Buying
If you sell your home before buying another, the biggest downfall is that you’ll have to find temporary housing and move twice. The good thing is, once you’re in the temporary housing, you won’t feel overly rushed to find the perfect home.
As you can see, there are several ways to buy your next home. This blog was meant to provide a brief overview of each option, but if you’re ready to begin the process, we’d love to sit down and discuss your options to find the best fit for your unique situation. Please don’t hesitate to call us at 402-991-5153.