How do you purchase a new house before you sell your current one?
Do you have to pay both mortages? Or do they let you defer payments until you sell your house?
Quick House Sale
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January 1st, 2010 at 10:35 am
This is something you write into your offer on the new house. Purchase of the new house is contingent on you selling your current house.
Otherwise, yeah, you’re up a creek with two mortgages.
Your realtor will know how to put this in the offer. It is very common.
January 3rd, 2010 at 7:44 pm
you pay both morgages
January 5th, 2010 at 6:19 am
There’s a thing called a “bridge” mortgage that you get for the new house while selling the old house.
January 8th, 2010 at 1:20 am
Nope. Clock starts on mortgage as soon as it’s signed. That’s why there are so many problems getting houses sold
January 8th, 2010 at 1:48 pm
you can just make verbal agreement, and have to clarify with your seller that you wont be able to move before you sell yours.
thats how you get 1-2 more months time, but if you sign deal then yes you have to pay both mortgage.
The easiest way is put them on hold and sell yours and move..
January 8th, 2010 at 6:52 pm
You might find a bank that will let you have a bridge loan, it is a loan on both properties. Or you can purchase another house on the basis of selling your other home. All the new fiance company will need will be the HUD statement on the sale of your property. Good Luck.
January 11th, 2010 at 5:03 am
It’s usually better to sell your current house before you buy another. However, if you don’t think you’re going to be able to sell your house by the time you close on your new house then you can get what’s called a “bridge loan” that can help you handle both mortgages until your old house is sold. I wouldn’t do this unless you really got into a jam though.
January 12th, 2010 at 7:38 am
You can get a new mortgage while still having the old one. On the new mortgage, you will have to specify that the other is being sold and the lender may require to view paperwork proving it.
Simply because, if you do not, they might consider the new property non owner occupied and your rate will be higher. Yes, you still will be responsible for your first mortgage.
In your purchase contract of the new home, ask your real estate agent to put a contigency in your purchase. The seller can still sale the home if another buyer has an acceptable offer.
January 13th, 2010 at 8:34 pm
Very carefully if at all. It is possible in a bad market to get stuck with two houses and mortgages that you can’t get out of leaving you in financial ruin. There are things such as bridge loans etc., but if you aren’t sure of what you are doing and don’t have alot of extra cash don’t buy anything until after the sale of the first house is completed and you have all the cash in hand. For the less sophisticated, that is the safest and surest way. If you need to live somewhere else for a while you can always rent until the first house is sold. Usually a short term lease can let you get out of rental payments very quickly. Or even live in a motel at a weekly rate, its a heck of alot better than going bankrupt with two mortgages you can’t handle. Buyer beware.
January 16th, 2010 at 9:59 pm
You could refinance your current primary residence into a bridge loan. These are typically six month loans. You would just pay the interest, once your house sells. However, you may be in trouble, if your house takes longer to sell. I would recommend an interest-only, first mortgage home equity line of credit.
January 20th, 2010 at 8:19 am
the first answer is correct.most Realtors will do this and put in a 48 hr.kick out clause. that is in case another buyer comes along you have 48 hrs. to make a decision.
January 23rd, 2010 at 2:27 am
do not do it, it is called a bridge loan and many many people have gotten burden by them, end up selling their old home for much less then they wanted but where force to because could not afford the high monthly note payment on both houses
once you sell cash in hand you will find a good deal to buy at this time cash is king once again
January 26th, 2010 at 12:18 am
very carefully! I would list my home for sale first! Then when it sells, start shopping. However, if you have already found the perfect next house, there is a chance you may be paying two mortgages until your current home sells.