Minnesota Homes Today Local & National News

  • Home
  • About Us
  • Blog
  • Resources
    • Buyers Guide
    • Sellers Guide
    • Buyer Info
    • Seller Info
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
  • Contact

What Happens If You Find Your New Home Before You Sell Your Old One?

September 3, 2013 by Bob Elliot Leave a Comment

What Happens if You Find Your New Home Before You Sell Your Old One?What happens if you find the dream property that you want to buy before you have made the sale on your old property? Ideally you would have sold your current home before you buy your new property.

However, sometimes the transition doesn’t work out that way. You don’t want to give up the purchase if you have found a bargain on your dream home, so is it possible to buy the property before you have closed on your current residence?

The answer is yes, it is possible. You will need to use a financing option that will allow you to secure your next home before you have sold your existing property.

Getting A Bridge Loan

One option is a bridge loan. This is designed to wrap your payments for your current home and your future home into one loan, which can last usually between six and twelve months.

This type of loan usually involves a small fee and you will also be responsible for the closing cost on the mortgage on your next home.

Borrowing From Your 401K

Another option that might work is to borrow from your 401K, if your company allows it. In this situation, you will be able to borrow the money and then repay it right away when you sell your home. Of course, make sure you find out the rules on this first so that you are not at risk of incurring any penalties with the IRS.

Taking Out A Personal Loan

Another possible option is to take out a personal unsecured loan. Keep in mind, these types of loans usually have high interst rates and they will only last for a few years. Also, you will need to include the payments that you are making on that loan when you are qualifying for a mortgage on your next home.

Advantages To Buying Before Selling

One thing to keep in mind is that if you buy a new home before selling your old one, you will save yourself from a period of transition when you are between homes. Also, you will only need to hire a moving company once and you won’t have to put anything into storage, which will save you money.

For more information on how to make the best transition into your new home, speak with your trusted real estate professional today.

Filed Under: Home Buyer Tips Tagged With: Home Buyer Tips, Home Loans, mortgage tips

Leave a Reply

Your email address will not be published. Required fields are marked *

Bob Elliot

Contact Bob Elliot

Broker Agent
CRS, GRI, CDPE

CALL 612.868.5500
Lic #: 40241196
eXp Realty
Bob Elliot
Free Buyers' Guide →
Free Sellers' Guide →

Connect with Me!

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Realtor EQO

Quick Links

  • About Me
  • Accessibility Statement
  • Blog
  • Contact

Looking For Something?

Categories

Located in St. Paul, Minnesota

Copyright © 2023 · Powered by MySMARTblog