How do I sell my house and buy another house at the same time?
I own my house but I have a small equity loan against it. I’m ready to move and my house is on the market (been on the market for a month, no bids). I’ve found a house I want to buy. Is it best to wait till my house sells (so I can pay off the equity loan) or can I go ahead and buy now? I figured selling my house would also allow me down payment money. The new house would be the first house I’ve ever bought. I inherited the house I own now. Need more room. I’m in excellent standings with who I have the equity loan with (countrywide), so I’m sure I could get a mortgage for the new house with them. Just not trying to have an outrageous mortgage payment. I’m in Georgia. Thanks in advance for any advice!!
I am selling my current home through a realtor. Should I lower my asking price to possibly get the sell over with?? I don’t want to rent my current home b/c it is serious need of repairs. Developers/investors have been buyin in my area and demolishing the old homes and building new homes as 2 family rentals. So I know there is a strong possibility my current house will be demo’d…therefore renting is out of the question.
Thanks for the answers!!! I ‘preciate it!
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Tags: Countrywide, Current, Developers
buy property | , 3 Feb 10
By alwayz_vicky, February 6, 2010 @ 5:17 am
You could totally buy another house while your previous house is up for sale. Right now is BUYERS MARKET! But you would have to pay the mortage payment on the old house AND the new house. Interest rates are pretty hight now days. But if i were you, I’d rent out the house you’re living in right now about till 2009 cuz that approximately when the SELLERS market is going to go up, and then sell if for more then its for sale now!
By Kaitlyn B, February 8, 2010 @ 12:04 am
you should probably let a Realtor do all the work. Then you could buy a house
By Mortgageman, February 11, 2010 @ 7:03 am
If you are comfortable with both payments, go ahead. However, you are going to get better financing with a down payment. You could get both homes now and then refinance the new one, once the old one sells. You may be able to negotiate a no-cost refi.
By CMR2006, February 12, 2010 @ 2:43 am
The choice would be yours in the sense that if your current house does not sell soon, you may be stuck having to pay two mortgages.
Otherwise, if your current home must sell first, make an offer contingent on your house selling. Most sellers, especially when working with an agent will not accept this kind of offer unless you are already in escrow. Even then, it is iffy because there have been a lot of escrows falling through.
If you do not mind possibly two escrows and your credit is good, make an offer on the new home, contingent on financing. Then when the other one sells, you can always pay up on the new mortgage, etc….
By DJ B, February 12, 2010 @ 8:37 pm
Well the big question is “can you afford two mortgage payments”? If not, sell first, then buy.
By glenn, February 14, 2010 @ 4:33 pm
I recently bought my new home and then two months later sold my old house.
I got a “bridge” loan against the old house that allowed me to put a large down payment on the new house and pay the closing costs.
When I sold the old house I paid off the bridge loan and used the rest to do some “fix up” I wanted to do.
_____________________________
I could have written an offer on the new house contingent on me successfully selling my old house, but I thought that would weaken my negotiating stance.
By Lisa P, February 17, 2010 @ 8:50 pm
Ok- there are a couple of different ways you can do this:
1. You can keep your house listed and purchase the other house. If your loan is small on the home you inherited, you may be able to get what is called a “bridge loan” through CountryWide. A bridge loan basically combines your current mortgage with your new mortgage. The pros are that you get to get into the home you want now and you can keep your home listed until it sells without having to get renters. Because you won’t have a home-sale contingency(that’s explained in my #2) you could also probably get a little better of a deal. The cons are that you will be paying a higher mortgage payment (until you sell the current home) and you will also be paying property taxes on two different properties until your current home sells.
2. Another thing you can do is write an offer on the house you like and put in a contingency called a “home sale contingency”. This means that you make an official offer on the home you want to buy, but it is contingent on you selling your home FIRST. The pro of this is that you get to wait to sell your home before you buy the new one and the cons are that you need to be more agressive and probably get a price reduction on the home you are currently trying to sell. You will also need to be a little more agressive as to what you offer money-wise on the home you like. Basically, you need to really make it worth the seller’s while to choose your offer. Also- there are usually called “kick-out clause”s on home-sale contingencies. This means that if some one comes along that does NOT have a home to sell first, the sellers can “kick you out” of the offer. That is another reason you need to be agressive with the price you offer on the home you want to buy. The sellers may choose not to kick you out if you offer full price (for instance) and buyer’s that don’t have a home to sell offer let’s say $10,000 under list price.
Either way, price reductions are always a positive thing in terms of selling a home fast. It’s up to you, but if you really love the house you want to buy, reducing your price may get you the house of your dreams.
By PiMp DaddY, February 20, 2010 @ 2:27 am
you can go ahead and make the offer on the home you liked and put in an addendum with the pre-condition that your home sales before you go into escrow.
your realtor should give you more info on this
By green giant, February 22, 2010 @ 5:55 pm
look for a realtor , she / he will manage the buying and selling of your house , its legal and good to let the realtor do it for you