Buying a new home but still have to sell current house

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.

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

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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.

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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

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?

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Do I start with a bank?

I thought that would help having no debt on the current house

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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!

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.

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

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.