Buying And Selling At The Same Time

Certified Mortgage Advisor
NMLS 1701021
Published 
March 22, 2020

How do we sell and buy

So if you already own a home and you're looking at selling your property, but you also want to buy a new car. The hard part is figuring out how do you manage both at the same time? Because there's a lot moving on the finance side, there's a lot moving on the emotional side, right? There's a lot of things going on and we need to figure out a good game plan for how do we sell the property that you're in and also buy a property that you're looking at.

Best set up when selling and buying

So here I think is one of the best ways to do it. So I'm working with a couple right now and we'll end up closing their property here in about two weeks. So they're moving from Arizona and they have a property there and they also have a property that they're wanting to move into. So the way that we're setting it up is they went ahead and put in an offer, on a new house. The next day they went ahead and listed their property in Arizona.

So the way that we're setting it up is. While they're waiting for the property to sell in Arizona, which is going to take about 20 days. We went ahead and we finished up the mortgage. We got everything wrapped up that they needed to that way, when they close on the sale of their property in Arizona, we'll wait a short period of time about maybe three to four days, and then we'll close on the purchase of their new home. So I think that's the most ideal way to do it. It makes it so that you don't have to carry two housing payments.

Avoid two housing payments

Sometimes what I've seen people will do is they'll have their house, but they go ahead and buy a new house first and then they list their house. The big problem with that is that it's difficult to qualify because you have to have two housing payments. So if you're mortgaging one or both properties, keep in mind that both of those housing payments will be factored into that. And it can be a little difficult to qualify for. So I really think that the strategy of doing them both at the same time is best because you don't have to carry the two housing payments and then you can take the equity from your sale then move it into the down payment of this new property.

May be overwhelming but a good plan will improve the process

So I hope that adds some clarity to the process. I know it can feel a little overwhelming to figure out well what's the best option for us. Which one should we do first, and it really depends a lot on your situation and what you think is best.

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