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Buying a new home but still have to sell current house
Posted on 4/3/18 at 4:11 pm
Posted on 4/3/18 at 4:11 pm
A house went on the market I really like. There is zero mortgage on my current house. Its all paid off. I believe it will cover 85% down of the new house.
What is the best route to go in trying to make an offer on the new house even though I haven't listed my current house yet?
I want to act fast if possible. We dont have any help from parents either.
What is the best route to go in trying to make an offer on the new house even though I haven't listed my current house yet?
I want to act fast if possible. We dont have any help from parents either.
Posted on 4/3/18 at 4:22 pm to LSUvegasbombed
We are kind of in the same boat, but our house isn't paid off.
We did a 60 day act of sale with a contingency that our has had to be sold. If for some reason someone puts in a better offer on the house, we have 72 hours to remove the contingency from the contract or the other buyer gets the house and our contract is void.
That is mainly because we can't do two mortgages at the same time, but since your house is paid off you may not be as financially constrained as us.
We did a 60 day act of sale with a contingency that our has had to be sold. If for some reason someone puts in a better offer on the house, we have 72 hours to remove the contingency from the contract or the other buyer gets the house and our contract is void.
That is mainly because we can't do two mortgages at the same time, but since your house is paid off you may not be as financially constrained as us.
Posted on 4/3/18 at 4:25 pm to Drunken Crawfish
Do I start with a bank?
I thought that would help having no debt on the current house
I thought that would help having no debt on the current house
Posted on 4/3/18 at 4:36 pm to LSUvegasbombed
you should probably talk to a lender and get preapproved for a loan
if i were you i would try and get approved for as much as possible considering you may not be able to sell your house in time
if you can't swing that, you may have to make an offer contingent on selling your current home, but you would still probably need pre-approval if you plan to borrow any money to buy the more expensive house
if i were you i would try and get approved for as much as possible considering you may not be able to sell your house in time
if you can't swing that, you may have to make an offer contingent on selling your current home, but you would still probably need pre-approval if you plan to borrow any money to buy the more expensive house
Posted on 4/3/18 at 4:38 pm to Croacka
quote:
you may have to make an offer contingent on selling your current home
they said no to this since they have had several showings since being on the market 1 day
if my house was under contract then that could be a different story
Posted on 4/3/18 at 4:38 pm to Drunken Crawfish
quote:
We did a 60 day act of sale with a contingency that our has had to be sold. If for some reason someone puts in a better offer on the house, we have 72 hours to remove the contingency from the contract or the other buyer gets the house and our contract is void.
That is mainly because we can't do two mortgages at the same time, but since your house is paid off you may not be as financially constrained as us.
i did the same 2 years ago
i got really lucky and our house sold in 3 days
it did hurt me in negotiating though...i feel that I could have probably lowballed my offer a little if I weren't making a contingent offer
it can also hurt you selling your home since deep down you know you need to sell it quickly and you may take an early offer that isn't the best, but you don't want to wait.....luckily we were able to get asking price on our sold home
Posted on 4/3/18 at 4:39 pm to LSUvegasbombed
quote:
they said no to this since they have had several showings since being on the market 1 day
if my house was under contract then that could be a different story
well, i would try and get preapproved for a mortgage for the full value of the house if you really want it
i can't recall how they will handle any down payment requirements and what you may have to show that you can put down in case you don't sell your house in time
Posted on 4/3/18 at 4:49 pm to LSUvegasbombed
I have no experience with this but just spit balling, possible to get an equity line on your current house for 20% down on new house, then sell old house?
Posted on 4/3/18 at 4:56 pm to Tiguar
quote:
Do I start with a bank?
I thought that would help having no debt on the current house
Yes start with a bank. My wife works in mortgage so I always skip that step in my mind.
I would go get pre-approved for your loan and having no debt on the house will help with your DTI when they are assessing how much of a loan they will give you.
Tiguar's idea may work as well. I am not that financially savvy to tell you whether or not banks will do that.
Good luck!
Posted on 4/3/18 at 5:33 pm to Tiguar
quote:What's the limitation in Louisiana. In Texas, you can only borrow up to 80% of the value of the home.
I have no experience with this but just spit balling, possible to get an equity line on your current house for 20% down on new house, then sell old house?
Say, it's valued at $500k. You can borrow up to $400k, less what's owed on it, so if someone owes $300k, they can only borrow $100k against the home, even though they have $200k in equity.
Posted on 4/3/18 at 6:18 pm to LSUvegasbombed
If you own your current house free and clear and have reasonable credit, you’ll find a lender that will loan you the money for your new home. Without a need to sell your current.
Posted on 4/4/18 at 8:49 am to Golfer
Golfer is correct if you have a good relationship with your bank this shouldn’t be a problem at all.
Posted on 4/4/18 at 12:14 pm to LSUvegasbombed
Do a 90% bridge loan on current home to put the largest down payment on new house
Do a traditional mortgage for the ~25% needed for new home.
When you sell current home the bridge will be paid off (pay interest only until then). Will have the 10% from current home back to yourself and just have the house note of ~25% on the new home
Profit...
ETA: Can do less than 90% if you would like, just a larger note on new home which will have a mortgage on it longer. Depends on what you prefer
Do a traditional mortgage for the ~25% needed for new home.
When you sell current home the bridge will be paid off (pay interest only until then). Will have the 10% from current home back to yourself and just have the house note of ~25% on the new home
Profit...
ETA: Can do less than 90% if you would like, just a larger note on new home which will have a mortgage on it longer. Depends on what you prefer
This post was edited on 4/4/18 at 12:16 pm
Posted on 4/4/18 at 8:16 pm to LSUvegasbombed
With no mortgage on current house put little down as possible. Once your current house sells if you didn’t make enough to pay off house either pay down the balance or recast the loan.
Posted on 4/5/18 at 6:59 am to LSUvegasbombed
I recently bought a new home without selling the home I was living in. I'm currently now renting my previous house.
I did not need the equity in my other house to pay for my new one so it wasn't a problem. If you can put 20% down without hte equity of the old house you could always do that then pay down the principal when you sell the house.
I did not need the equity in my other house to pay for my new one so it wasn't a problem. If you can put 20% down without hte equity of the old house you could always do that then pay down the principal when you sell the house.
Posted on 4/5/18 at 10:37 am to LSUvegasbombed
I'd take out a HELOC on the current house so that you can put at least 20% down on the new house and not have PMI. Can always do more than 20% if you wanted to put a bigger down payment by taking out more equity from the current home.
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