We know there’s a lot of people who are either moving down or moving up for their next home. Do you put your home up for sale first? Do you go out looking for a new home? What if you find your dream home before your house sells. There is a lot of different scenarios that can swirl around in your mind so we want to talk about your options.
Here’s the scenario: you maybe didn’t even think you were looking and you found the perfect home. Or you’re thinking about moving, you just want to started looking and and you almost stumble on your perfect home.
Number one, if you’re fortunate enough to be able to buy the home without selling, you can make an offer and proceed with the purchase while taking time to sell your home or keep your current home as an investment property. If you are needing a mortgage, talk to your lender. See if you can qualify – maybe even get a home equity line to go ahead and purchase the home you want.
Most often, buyers are not fortunate enough to be able to buy and still have their current home. If this is your situation, fear not; there’s a couple of different options that you can do. First, you can submit a contingent offer. Oftentimes a seller, won’t except a contingent offer. A contingent offer means you’re willing to purchase the home contingent on selling your home. Again, most sellers won’t accept a contingent offer in today’s market. It’s a strategy but probably not a successful strategy. Second option is to list your home quickly. Find the right real estate agent with great marketing, list your home and hope that you get an offer. It can happen. You can be successful at it and maybe then you turn around and make an offer on the home you want, provided that home hasn’t sold. It’s a difficult strategy because if it’s a great home, somebody else might want it too. Your best strategy and most successful strategy could be to get a bridge loan. A bridge loan is temporary financing to provide a way — figuratively, a ‘bridge’ — to purchase an additional home without first selling a home. You might use it to cover closing costs for a new mortgage. You can also use a bridge loan to present an offer without a financing contingency when you make an offer to purchase a home. Here at Compass, we have a great Bridge Loan Program. Compass will fund your payments on the bridge loan for six months because we know it’s sometimes difficult to make 2 mortgage payments at the same time. Once you close on your first home, the bridge loan payments will be repaid to Compass – no interest or fees charged on them floating you that money. How nice is that?!
I hope that makes some sense. Let us talk to you about a bridge loan – bridging the gap so that you can find your next home, make an offer on it, get into the home and then put your current home on the market. It’s just another way we are here for you to to alleviate any stress point that could possibly come up with buying and selling at the same time. We know it’s stressful. We’d love to walk you through it. Strategy matters, and we’d love to work with you.