5 Ways To Buy Your Next Home Before Selling Your Current One

By Michael Ulloa

Michael Ulloa is the Broker-Owner of Happy Florida Homes Realty and Property Management, with a proven track record of helping clients buy, sell, and invest in real estate since 2015.

It’s exciting when you finally find your dream home. But what if you haven’t sold your current one yet? Today, we’ll explore some options that you can consider to help you buy that new home without waiting for your current property to sell:

1. Cash purchase. This is probably the most straightforward approach when buying a home. This option eliminates the need to sell your current one and also puts you in a stronger negotiating position. However, most people find it challenging to save enough cash for a down payment on a new home.

2. Traditional financing. If you have a good credit score, you may qualify for a traditional mortgage to buy your next property. However, you must take note that qualifying for two mortgages can be dependent on your debt-to-income ratio, so make sure you meet the lender’s requirements.

3. Home sale contingency. You can make an offer on your new home contingent upon the successful sale of your current home. This option gives you security because you are not obligated to buy a new home if your current one doesn’t sell.

4. Bridge loan. This loan is a short-term loan that aims to “bridge the gap” between buying your new home and selling your current one. The coverage of this loan covers your existing mortgage payment and downpayment for your new home for a short period of time, usually six months. This way, you don’t have to worry about making double payments. The downside to this is the additional interest cost.

5. Seller financing. This strategy is also known as wonder financing. Unlike a traditional bank, where you have to apply and qualify, the money comes out, and they pay the seller. Here, the seller acts as your lender, holding a mortgage on the property. This method allows for more negotiation on terms like interest rates and down payments. This is not common and may not be available for all properties.

Remember that the best option for you depends on your financial situation, your risk tolerance, and the real estate market. To help you evaluate your options, reach out to us. We have a team of qualified real estate agents and financial advisors. You can call, text, or send us an email, and let’s work on a personalized strategy for your needs.