Need to know how to buy a house before selling your current house?
So you need to know how to buy a house before selling your current house; we’ve got you. In this simple, easy-to-understand post, we will bring you several ways to buy a house before selling your current house without breaking a sweat.
When it comes down to the matter of how to buy a house before selling your current house, securing enough capital for a down payment on your new house is usually the biggest issue of concern. This is the major issue we will be focusing on in this article, alongside general advice about how to buy a house before selling your current house.
Additionally, when thinking about how to buy a house before selling your current house, you must consider whether the house in question is paid off or not.
How to buy a house before selling your current house that is paid off
If you are in a hot seller’s market, and your home is fully paid for, then you have little to worry about. You will get a pile of offers for your home, and they most likely will be good too.
If you fall into the category of people wanting to sell their homes that have been fully paid off before moving out, then there are a plethora of options available to you.
However, people who have not completely paid off their homes can also consider the following options:
Get a 401(k) loan:
If the repayment period, terms, and interest rates are favorable, coupled with your mortgage plan being flexible enough to accommodate a 401(k) loan, then taking one out may be a great way to refinance your new home. Be sure to speak with a consultant and have a quick debt recovery strategy.
Use your current house as leverage:
You can use your current property to secure a HELOC loan, which essentially is a second mortgage taken out on your house. Think of it as your last line of defense if you are cash-tight and need an urgent bailout. This will also be a fantastic option if you are able to get a buying offer that covers the cost of all your loans and still affords you profits. Banks, however, do not like to offer this advantage if your house is already up for sale so ensure to take out the loan before you put your home up on the market.
Put only a little down:
Putting down as little as possible is also another way to buy a house before selling your current house. Some FHA loans allow you to pay as little as 3.5% provided that you have a good credit rating.
Refinance your loan agreement with your mortgage lender:
In a debt refinancing arrangement, the following happens: you take out a portion of the equity (in the form of a loan) of your current home value from your mortgage lender and use it as a down payment for a new home. The bank then stops the mortgage payments on your current home and adds the amount you owe to your new mortgage.
If you are looking for how to buy a house before selling your current house when your mortgage is almost fully paid off, then this may be a good option for you. It may also reduce your overall interest rate on the principal amount. However, debt refinancing can be expensive so ensure that you read the fine print.
Timing can also be a crucial factor in buying a house before selling a current house. If you are able to secure a buying a selling offer all within the same span of time, you may be able to take cash from your home sale and simply use it to finance the purchase of your new home.
Selling your home with Tgaz Investments LLC
Negotiating with a cash buyer like Tgaz Investments is one savvy way to buy a house while selling your current house.
The cash from the sale frees you up instantly and gives you debt-free money to invest in your new property. Never mind if you have an active mortgage, we’ll take it from there.
Just call us at (480)-848-7173.