Buying a home is a dream to many! There are many factors to consider while doing it like research on market, documents, payments and closing process etc. If you are a new buyer then the market’s fluctuation might confuse you a lot. What if you have to sell your home at the same time you are buying home? That’s so hard! Right! No worries! Here are the few tips to remember when you do both buying and selling the house simultaneously!
Make sure which process should be carries out first, buying home or selling! Generally people make arrangements to sell their home and use that money to buy a new home. If you are financially stable then you can buy a house first, move to it and then sell your home.
You have to analyze your mortgage and financial situation to make your first move always.
Can you sell first?
Yes, but should well plan it and research on the market value of your house. Find the comparable home nearby your home and know their value. Enquire your surroundings about the house which has been sold out recently and what the selling price was. By this you’ll come to know the current trends prevailing in the housing market and also the net worth of your home.
Be precautious since you are not only selling the home but also buying the new one. If you overestimate the price of your house then there may be shortfall with the budget for new home. Avoid last minute hassle by predicting the correct sale price of your old home and buying price of new home.
You can easily get the new mortgage if you decide to sell your home first but there are some disadvantages too. You need to find a rent and move all your belongings until you buy your new home.
Can you buy first?
This is more advantageous but you need to be financially good so that you’ll buy the new house without any mortgage. The major advantage of this option is you will have enough time to sell your house since you have already bought one. You can wait for a potential buyer and get the most of your home easily
If you have two mortgages then it’s not easy to handle until you sell the home. You cannot qualify for new mortgage if you already have two. If you want to buy a house before selling the old one, make sure that your income is sufficient enough to handle two mortgage payments at the same time.
At the same time if you buy your house first, then you can make your old house a rental property and get cash flow income on a monthly basis. This will help you with the mortgage payments until you buy and move in to your new house.