The burden of selling a home while you’re in the thick of the new-house search can seem a little daunting. But juggling selling and purchasing simultaneously can be manageable if you keep the right things in mind.
Ask yourself the following questions about your own unique situation.
Which should I do first?
There are pros and cons to purchasing a new home or selling your current home first. When it comes to selling first, your mortgage process is simplified and you’ll have an exact figure to work from when it comes to setting your budget. However, if you sell before you buy, you’ll need to find temporary housing. When it comes to buying first, you’ll have more time to move; however, you might be stuck paying two mortgage payments at once for a certain amount of time.
How can I finance it?
Financing a repeat-homebuying transition demands a tight budget and having your finances totally in order. Remember to keep a good credit score and shop around for the best lender. It also can help to implement a contingency on your current home selling, and don’t forget to make use of the SDHDA Repeat Homebuyer Program to assist you.
When should I set my closing date?
Whether or not you sell your current home before closing on your new one, make sure you’re preparing financially and readying your current house for a sale in the meantime. Consult your real estate agent on a closing date that factors in your temporary housing status and whether you’ll leverage the proceeds of your current house’s purchase.
When juggling purchasing and selling, your timing is key. Plan ahead for market conditions and financial constraints – and do your homework. A repeat homebuying situation is much smoother with a little planning.