Purchase Before You Sell. Excessively Risky, Right? Wrong! Regular Home Owner Myth: I can’t accept “another” house without first selling my “old” one. That is how it should function, Correct? You can’t have another house without disposing of the “former” one. Not really. Take, for instance, the tale of one of our customers. They had a house and had no goal of leaving. Notwithstanding, one day this house in their neighborhood became available – You know the house; It is where each time they drove by, they wished it was theirs. Shockingly, this house would never be available to be purchased. Suddenly, the inconceivable occurs: the house goes on the market!
They called us & just like that, the home they thought was out of reach is now theirs! The way they did it was to close both homes in one day, so they never had 2 mortgages, which was their fear. First, they place a contract on the new house to ensure no one beats them to it. We advised them to make the purchase of the new house contingent on the sale of the current home so that they only had to buy the new one if their current home sold. It sold within a reasonable time & they closed on both houses in one day.
There is another way as well. They could have used the equity in their current house, utilizing a Home Equity Line of Credit or a second home loan. Utilizing the equity as an initial installment and getting their new first home loan to finish the buy. They could have used the equity loan as the down payment for the new house & kept enough cash on hand to make payments on the old house – This way, they are not in a hurry to sell their home at a discount since they had the comfort of having several months payment on hand. When the “old” house sells, the two home loans are exchanged, and they pay off the original home loan.
Another approach to accomplish a similar outcome less than the “old” house installment hold is to utilize an 80% first home loan and a 20% second home loan (from their equity) additionally called 100% financing, to purchase the new house. They won’t need to put any cash down and when their “old” house sells, they utilize the returns to pay off the second. The professionals at Crown Realty Experts are here to help to get into houses every day. So don’t worry. Contact the real estate experts at Crown Realty Experts to assist you. We have other ways that we can use as well. Please contact us to find out which options are available for you!