Are there options to buy a home before selling my home?

by Jay Cottrell

Buying a new home before selling your current one can be a challenging process, but there are several options available to make this transition smoother. Here are some strategies you can consider:

Bridge Loans - Bridge loans are short-term loans that can help you bridge the gap between buying a new home and selling your current one. These loans typically have higher interest rates and fees, but they can provide you with the funds needed to make a down payment on your new home before selling your old one.
Home Equity Loans or Lines of Credit - If you have built up equity in your current home, you may be able to take out a home equity loan or line of credit to use as a down payment on your new home. These loans allow you to borrow against the value of your home and can be a good option if you need funds quickly. If your home is paid off, you may be able to get enough funds for the full purchase price of your new home. There is also a new product a few banks called a Purchase HELOC. This allows you to purchase your new home with the use of HELOC instead of a mortgage.
Contingent Offers - You can make an offer on a new home that is contingent on the sale of your current home. This means that if your current home doesn't sell within a specified time frame, you can back out of the offer on the new home. While this can be a good way to secure a new home, it may not be attractive to sellers who want a guaranteed sale.
Renting - Another option is to rent a home or apartment temporarily while you sell your current home. This can give you more time to find the perfect new home without feeling rushed.
Sale-Leaseback - In a sale-leaseback arrangement, you sell your current home to a buyer who agrees to lease it back to you for a specified period. This can give you the funds you need to buy a new home while allowing you to stay in your current home until you are ready to move.
Negotiate a Longer Closing Period - When buying a new home, you can negotiate a longer closing period to give yourself more time to sell your current home. This can give you more flexibility in the timing of your move.

Before deciding on a strategy, it's important to carefully consider your financial situation and goals. Working with a financial advisor or real estate professional can help you determine the best option for your needs.