Selling Your Home While Buying a New One
It starts with understanding the current home market and maximizing your buying power!
For many out there, selling your current home and buying a new one is not a walk in the park. Many do not have the luxury of carrying two mortgages, so selling and buying has to often happen simultaneously. Good news is we have a couple tips for navigating this process and it starts with understanding the current housing market for selling your home.
What’s the current housing market?
With the lack of homes for sale, it is currently a seller’s market. This is good news when it comes to selling your home since more than likely, it will sell fast. The downside is if you have not already found your new home and ready to put in an offer, than you may feel yourself scrambling to figure your living situation. If you have not found your new home yet, than you have a few options.
Hold Two Mortgages – If paying for two mortgages is something that financially qualify for and works out for you than this is normally a great option for those who have found a home before their current house is sold.
Rent – Doing a month to month lease rental may be a good solution if paying for two mortgages is not an option. With a month to month lease you will be able to pick up and go once your dream home comes onto the market.
Purchase and Sale Contingency – If neither renting or affording two mortgages are in the cards, sellers do have a third option to prevent them from being horseless once the sale closes on their current home. Sellers are able to write in their purchase and sale agreement that the existing offer is contingent on them finding a replacement home.
As a seller, it’s important to know there are options for them if the right home does not become available on the market as soon as their current home is sold. However when the time does come where you are ready to make an offer, it’s important to know how to leverage your buying power as their will likely be more competition out there for purchasing homes.
How do I maximize my buying power?
Being prepared to purchase a new home will help maximize your buying power and make your offer look more attractive to potential sellers.
Getting prequalified with your friendly neighborhood lender such as Robert Powarczuk at Absolute Issaquah is the first step when searching for your new home. Working with a real estate agent who understands your unique situation of selling and purchasing a home at the same time will also work in your favor.
When getting pre-qualified with Robert, he will be asking for required documents such as last month of most recent paystubs, W-2’s for the past two years and 2 months statements for all accounts; including all checking, savings, stocks, IRA, 401k, etc. For a complete list of required documents check out our Document Checklist page. He will also be checking your credit, looking into loan programs based on your down payment, and educating you on the basic Do’s and Don’ts during the home loan process.
By having an experienced lender to help handle your required document, answer any questions on credit and assisting with payment options, you will be better equipped for a quick pre-qualification and ready to take on the market for when your dream home goes up for sale.
Finance Your Home With Robert Powarczuk