What is the best way to buy a home before I sell my existing home?
Thanks for all the advice, but I was asking WHAT IS the best way to go about doing it….not IF I should do it!
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October 2nd, 2009 at 10:57 am
Your husband is smart. Listen to him. If you wait until you sell your house, you will know exactly what you have to work with, which might be less than you think. You also might be able (and probably will) to get an even better deal in a few months.
October 4th, 2009 at 5:58 am
I got a home before mine was sold, and it was very bad it took more than one year for us to sell the house we where making payments on 2 homes, we went in to too much debt and now I’m about to file for chapter 7 because that year that we had 2 homes left us in financial trouble.think carefull and make sure that you can pay 2 homes at the same time.
I had my old home in Sacramento Ca (close to Gerber Rd.) the only way that I was allowed to buy the house that I have now (and i might be loosing soon) was by showing the new lender that I already had a contract (buyer on my old home) that buyer back out 1 week after I got approved for the loan.
October 4th, 2009 at 9:16 pm
Buying before selling prior home is a recipe for disaster as another person posted and before you even think about it; I have a few things you may ; no MUST research.
1. How do you KNOW the value of your home if you haven’t even listed it yet? The real estate market is changing rapidly and unless you are a expert in property valuation AND have done the reasearch most homeowners do not correctly value thier houses.
2. WHY are you wanting to trade homes if you do not know the REAL numbers or costs involved in the deal? You have to take into consideration the cost basis of your home, tax benifits/liabilities, closing costs and the purchase and the resale, debt to income ratioes, credit ratings, availible funds, stability of income and expenses, and more to KNOW the REAL cost of trading residences.
And you can’t or should not borrow funds from one house equity to buy another one without a VERY complete study of the situation. If you borrow against your HELOC and REMOVE equity from your house then if the house will not sell at the price you want; you MAY not be able to lower your selling price because you now owe MORE then it is worth. This would mean that you can’t sell the old house and without equity in the new hosue to payoff the old HELOC, you would be stuck with 2 house payments that you can’t afford and will risk losing BOTH houses.
Sell your first house, RENT something on a mont to month lease or 6 month lease if you have to and THEN research and buy another home.
If you don’t have “cash down” then you do not have the finanical assets to try to juggle 2 houses. Instead of trading houses, I would spend some time figureing out WHY you don’t have money for a down payment and how you can restructure your income/expenses/taxs so that you DO live within your income level and can quit spending 100% of what you make.
October 6th, 2009 at 11:04 am
You husband is right.
Why are you playing russian roulette with your financial life just to get a good deal on another home?
Listen to your husband and if you really are serious about this other home SELL YOUR EXISTING HOME FIRST.
If you don’t, you will most likely be stuck with 2 house payments.