Growing out of your current home? Thinking about downsizing or moving to a different location, perhaps a condo on the beach? With home prices and mortgage rates at all time lows, now is a great time to buy a home. You may have to put the brakes on and sell your current home first. With stringent lending guidelines it is harder to buy before selling. Lenders require enough cash for a down payment and closing costs and you will also need enough income to qualify carrying both homes.
Still want to buy before you sell? There are a couple lending options that you may consider such as bridge financing and private loans. If you have a mortgage on your current home you may still qualify for a mortgage, just not for the full purchase price. You may consider a short term bridge loan from family or friends to bridge the gap until the sale of your current home closes. Another option is securing a short term private loan. Expect to pay a higher interest rate but you shouldn't have to pay it for long if your home is priced right for the market. Once your home sells, you can refinance into a better loan product to meet your needs.
Lastly, you may be able to buy contingent on the sale of your current home. However, banks selling foreclosure properties (REOs) usually won't accept a contingent-sale offer. Sellers may be wary of taking their home off the market to wait for yours to sell. It is always better to at least have your home under contract before you write an offer on a home. It is more likely to be accepted by the seller.
The Reynolds Team of Dale Sorensen Real Estate has the expertise and resources to help you find the best home to fit your needs. Our Team will show you creative ways to maximize your budget, find the best values, and shop for a mortgage. Call Scott Reynolds 772-321-2113 or email Scott@MyReynoldsTeam.com for more information. The Reynolds Team consists of Realtors Scott Reynolds 772-321-2113 and Shane Reynolds 772-321-4119 and Janice Reynolds, Team Assistant. Visit our newly redesigned www.MyReynoldsTeam.com to learn more about us!
