Almost everyone has ideas of what exactly their dream home looks like, but in most cases that dream home is a far cry from the first home you buy. Of course, we all understand that your first home is likely not your last and also probably isn’t quite the home of your dreams.
And for many families, they often outgrow their first home which necessitates either building a new home or upgrading into a home that fits their new needs. Regardless of the motivations you have for upgrading, the time will probably come where you need to make some choices. Are you thinking about buying up? Let’s look at some considerations before you take the plunge.
Buying Before Selling
If you’re like most of us, the idea of being “homeless” is a little unsettling. Having to move into temporary digs, move in with the in-laws, or sleep on a friend’s couch for a few months doesn’t seem appealing which begs the question: Can you buy a new home before you sell your old one?
The short answer to this is yes, you can buy your new home before selling your old home, but there are some caveats. Mainly, will you be able to qualify for a second mortgage and if so, can you front a down payment on a mortgage?
Selling Your Current Home
Among the considerations already mentioned, there are several more things to take into account such as selling or renting your current home. In a buyer’s market, where home inventories are higher, you should have no problem finding a new home but you may run into problems selling your current one.
On the other hand in a seller’s market scenario, where there are more buyers than inventory available, you can easily sell your existing home but may find it difficult to purchase a new home.
In either of those instances, there are pros and cons. If you have short-term temporary housing lined up with friends or family while you search for a home, then either scenario could play out positively for you. In a seller’s market, for instance, you may find it easier to build a new home instead of search for a home to come up. But in a buyer’s market, you may be able to rent your old home while you settle into the new one.
Getting Pre-Qualified for a Mortgage
In either situation, you’ll most likely need a mortgage and a lender to be on your side when it comes time to make moves. With today’s housing market teetering on very fine inventory lines, your ability to pull the trigger on a home may come down to a matter of hours.
With that said, the best thing you can do is to get in touch with a realtor or realtors you trust and get an idea of your area’s current housing market. Secondly, start getting pre-qualified for your second mortgage since time will likely be of the essence when it comes down to buying and selling.
Your best bet is to start your pre-qualification process at Tidewater Mortgage Services, Inc. by applying for a mortgage today. Our simple online application could get you pre-qualified the same day meaning you can start to make the necessary moves to buy and sell your homes and make accommodation for your family to make all of it happen on short notice.
No matter what, our experienced loan officers can help you find the mortgage product you need and give you some solid advice on how to proceed with your new purchase, call Tidewater Mortgage Services Today!
