My family and I are looking to upgrade to a larger come. We currently have a 1800sq ft house built in 2010. Owe about 130k on it, likely to sell for 290k.
We are looking for a house in the 500k range. We recently moved into new positions and our household income is close to 200k now.
How does one buy and move to a second home while selling the first? Bridge loans are risky I have heard. Contingency on sell seems to be tough in this market. HELOC? Or just stay here until we can afford the down payment of new house payoff if this one?
Georgia – buying a new house before selling old one
byu/tunnelpumper inRealEstate
Posted by tunnelpumper
4 Comments
It depends on your current financial situation
– could you qualify to a new mortage while selling your home? Where would your DTI fall?
– do you enough for a down payment if you buy before selling? Explore option with low down payment 3 to 5%. Ask seller for closing cost concession to minimize your cash to close
If the answer is no, you have to explore your options with a loan officer. Contingency offers are certainly possible if you find the right seller.
Thats for your mortgage lender to decide, not Reddit.
Ask them what your options are.
-qualify for both loans simultaneously briefly while you’ve moved into new one and selling old one. (could take out heloc on first home for down payment liquidity)
-Bridge loan
-Offer on new home contingent on sale of old home, then list and sell quick.
Depending where you are buying in GA contingency offers are once again an option in less desirable counties. In others, you can forget about anything with contingencies. Ask your realtor in the area you want to purchase what the market is dictating.