- April 30, 2022
- Thomas Adam
- Real Estate
As a general rule, the process of purchasing a property can be challenging. What if you are attempting to sell your current house while also trying to buy a new one? If you have a strategy and know what you are doing, you can accomplish your goal.
The key to success is to assemble a team of experts, including a real estate agent, and an attorney, to assist you in achieving your goals. They will help guide you through the process and make sure that everything goes as smoothly as possible. They will also be able to give you advice on how to best market your home and how to prepare for potential buyers.
The team, if they have been in the business for some time, can tell you when the market circumstances are favorable for buying or selling a home. They may also assist you in completing as many of the pre-move preparation tasks as possible; ensuring that any repairs are completed in advance; and avoiding becoming overly concerned with the little details that can cause a real estate closing to drag.
What Happens as Soon as the Current Home Has Been Sold?
If you have already sold your house but have not purchased or moved into a new one, there are a number of options available to you. You may, for example, contact relatives and friends to see if someone has a temporary place for you to stay. In addition, you will be able to reconnect with old acquaintances and family members. You may also negotiate a short rent with the home buyers, or live in a short let apartment for a while.
If the new home you intend to buy is more expensive than the former, which is often the case, you may also decide to:
1. Use Cash-Out Mortgage Refinancing
Cash-out mortgage refinancing is a process whereby a homeowner obtains a new mortgage loan in excess of the outstanding balance of their current mortgage loan, and takes the difference in cash. This can be used to finance home improvements, pay off other debt, or provide a cash cushion for unexpected expenses. Cash-out refinancing can be helpful if you need to buy a new house, as it can provide the funds you need to make a down payment or cover closing costs.
2. Use Rate-and-Term Refinancing
Rate-and-term refinancing is a type of mortgage refinancing in which the new mortgage is for the same amount as the old mortgage, but the interest rate and/or the term (length) of the loan are different. This type of refinancing can be helpful if you need to buy a new house because it can lower your monthly payments and help you get a lower interest rate on your new mortgage.
3. Get a Bridge Loan
Bridge loans are a type of short-term loan that is used to help borrowers secure new housing before the sale of their old home is finalized. These loans are typically used by people who need to move quickly, as they provide the funds needed to purchase a new home before the sale of the old one is complete. Bridge loans are also helpful for people who need to buy a new home before they sell their old one, as they can provide the money needed to cover two mortgage payments.
Only a few lenders provide bridge loans, and they are only available to those with good credit and a large amount of equity in their house.
No matter what choice you make, it is important to be informed and have realistic expectations so that the transition is as smooth as possible.
Adam Law Group
In conclusion, it is important to have professional help when trying to sell a home while trying to buy one at about the same time. The attorneys at Adam Law Group can help you navigate the waters and make sure that both transactions go as smoothly as possible. Contact us today to get started.