Solano Real Estate Scene: Move first then sell
Lots of people want to sell their house and move up or move down but don’t because of the perceived stress and hassle.
There are many ways to purchase your new home, move into your new home and then sell your departing residence after you get all your stuff out of it, clean it up and prep it to sell. This reduces stress and allows you to buy the new home non-contingent and can possibly get you a better price on the new home and compete in this market.
Buying first can also allow you to paint, carpet, clean and stage your departing residence to get the best price possible with the assistance of your local professional Realtor. Local Realtors have dependable local contractors on speed dial to assist their sellers and buyers.
Not all people can qualify to purchase their new home first but many can with the assistance of a local mortgage pro. Every case is different but the most common approach is a bridge loan or temporary financing that is paid off when the departing residence is sold. This temporary financing is extremely effective when helping a buyer that has a boatload of equity in their home and wants to move but procrastinates because of fear and their need for their home equity converted to cash for a down payment.
A bridge loan is a loan secured against the departing residence for the down payment needed to buy the new house that is paid off in three months to a year when the old house sells.
Another cool way to pull this off is to buy the new house with a first and second mortgage combo. When you sell your old house, you pay off the second on the new house.
One of my favorite ways to buy before you sell is to buy the new home with a small down payment and then pay down the balance when you get all the dough out of your departing residence. Some loans have a recast option which allows the borrower to make a substantial balance reduction and then the lender recasts the loan to the original amortization term, reducing the mortgage payment to your desired monthly affordable payment.
There is no cost involved in investigating your options and most loan officers are willing to show you all of your options even if you are not going to move for a year or two.