Can You Get a New Mortgage While Selling Your House
This guide covers whether can you get a new mortgage while selling your house. Many homebuyers who plan on upgrading or downsizing to a new home often ask if can you get a new mortgage while selling your house. YES, you can get a new mortgage while selling your house. With proper planning and teamwork, you can purchase a new home and sell your current one simultaneously. This is done often. John Strange, a senior loan officer at Gustan Cho Associates, explains how can you get a new mortgage while selling your house as follows:
People sell their current home and purchase a new one for countless reasons. It can be due to space. People may have children and need extra space. It can be due to parents wanting their kids to enroll in a top-rated school district. I can be to needing to downsize for homeowners who are empty nesters. Or it may be due to a job transfer above and beyond commuting distance.
Homeowners can consider Many options for buying and selling a new home simultaneously. Just moving to a new home can be stressful. Buying a new home and selling your current home simultaneously does not have to be stressful. Ask a lot of questions before and during the mortgage process. Learn about the steps of the mortgage process from when your real estate purchase contract is submitted to the clear to close. Choose a lender, realtor, and loan officer you feel comfortable working with. In the following paragraphs, we will discuss how can you get a new mortgage while selling your house at the same time.
How Can You Get a New Mortgage While Selling Your House Without Stress
A home purchase is most people’s largest purchase and investment in their lifetime. There are many moving parts with the home-buying process. Most people need a mortgage for a home purchase. The mortgage process normally takes 30 to 45 days. The lender will want countless documents and review your finances with a fine-tooth comb.
The mortgage process can be very stressful. There are many horror stories about borrowers who had things go wrong. Some borrowers even had a last-minute mortgage denial, while others had multiple closing delays. Things can go wrong during the mortgage process if the lender and borrowers are not on the same page.
The mortgage process does not need to be stressful. Getting a new mortgage while selling your house does not need to be stressful. It can be a smooth process. Setting proper expectations is key to ensuring the process is smooth. Getting familiar with the mortgage process and open communication is key. Educate and familiarize yourself with the overall home buying and mortgage process.
What Is The First Step To Take When Buying and Selling Home at The Same Time
One of the decisions you must make is buying or selling first. There is no correct answer on whether to buy or sell first. It depends on the individual circumstances. Many homeowners cannot afford two mortgages at the same time. Others may be able to pay two mortgages at the same time, but this will put a strain on their finance.
There are others who need to wait to buy first and sell late because they do not want to be in between homes. Homeowners who sell first before buying a new home do not have to worry about paying for two mortgages simultaneously.
This will be great if you do not have much furniture and a place to stay until you find a home to buy. You do not have to be rushed to purchase a home in a hurry. You can take your time and be selective. Buying before selling your home gives the homebuyer peace of mind because they know they will have a home to move into when they sell their current home.
Selling Before Buying: Moving Into Short-Term Rental
One of the major stress factors homeowners endure is when they have sold their homes and need a short-term rental to move into. Not knowing when and where your new home will be is one of the biggest stress factors homebuyers face. This holds especially true if the homebuyer has smaller children and pets. This also means moving furniture twice.
If you sell your home first before buying, you may need to move your furniture into the temporary story. During a seller’s market, it may be difficult to get the perfect home for the perfect price. Bidding wars are very common. There is more demand for homes versus inventory. Most people who sell their homes first are under the assumption they will find a home for the right place in a particular geographic location.
Many found it harder to find that perfect home for the right price. Many who sold their homes have second thoughts about selling. One of the common regrets is doing a complete renovation, including adding to the home with an FHA 203k loan, versus selling their home and not finding anything they like.
Cost of Temporary Housing Versus Paying For Two Mortgage at The Same Time
Sometimes it will cost more money, and you will have more stress when selling before buying. Finding a temporary rental can be a challenge as well. Many landlords do not want to cater to short-term renters. With the highest mortgage rates in 20 years, there is a major housing shortage and demand for homes. Home prices are skyrocketing as well. This is difficult if you have heavy furniture such as a pool table, piano, or other fragile pieces that can easily get damaged if not handled carefully.
Many want at least a one-year lease. Movers can be expensive. If you sell your home first before buying, you will most likely pay for two moving expenses. Buying a new home first offers many more benefits to the homebuyer and their family.
However, the negatives include paying two mortgage payments simultaneously. Maybe paying two mortgage payments simultaneously may not be bad if you consider the expenses of being in limbo when you sell your home first. The country is experiencing a major housing boom like never before.
Can You Get a New Mortgage While Selling Your House: Consult With A Loan Officer
One of the main factors a current homeowner buys a new house while selling the current home is ensuring they qualify for a mortgage. Can You Get A New Mortgage While Selling Your House?
Can You Get A New Mortgage While Selling Your House, but the House is not sold? Can You Get A New Mortgage While Selling Your House, and how much can you qualify for? You need to know where you stand. Maybe you may not qualify for two mortgages at the same time.
The first step when buying a new house while selling your current home is to see where you stand with qualifying for a mortgage. Your loan officer will review how much house you qualify for with just one or both mortgages. That is great news if your loan officer says you would qualify for both mortgages simultaneously. If you only qualify for a new mortgage but need to pay off the current home mortgage, then you have no choice but to sell your current home before buying your new home.
Can You Get a New Mortgage While Selling Your House: How Is The Housing Market
Now that you are pre-approved for a new mortgage on a new home purchase and should know whether you can qualify for just one or two mortgages, you need to research the current housing market. I would start interviewing real estate agents who know the area. You can interview as many real estate agents as you like. Get referrals from real estate agents from your loan officer, family, friends, co-workers, and neighbors. Research their online reviews. Search them on the internet and check out their online reputation. Ronda Butts is an expert analyst of the housing market. Ronda Butts has studied the national housing markets for the past 20 years. Tammy said the following:
Time which season will be best to buy or sell your home. Normally the late spring and early summer months are the home-buying season. You need to decide which season is best for you and your family. Families with school-aged children may not want the school year interrupted, so they may time list their home accordingly.
The winter months are normally slow. This holds true in areas and states with harsh cold winters and heavy snow. Winter months can be a good time to shop for homes. Homebuyers will not find too much competition and multiple offers during winter. If you decide to sell your home, start preparing your home to get the maximum price before listing it on the market. A little window dressing will not cost you a fortune but will attract more buyers. You can get top dollar by repairing/remodeling your home, but your home will sell sooner than your competition.
How To Prepare Your Home To Attract Buyers And Get Top Dollar
Every homeowner wants top dollar for their homes. Doing some minor work on the house can do a world of wonders. You do not have to spend a fortune for your home to show well and attract buyers. It does take time to prepare your home to show well. Many of the things to get done are common sense tasks. For example, clutter is a definite no-go. Rent a storage space and start moving things you need but are not in use. This may be winter clothes, bikes, toys, furniture, or other items. Things you do not need, either donate them or throw them out.
Decluttering and Preparing Your Home To Show Well
Decluttering and preparing your home to show well takes time. Months before you plan on listing your home, start preparing your home to show well. Many home sellers will have a garage sale where they can get rid of most items they want and benefit from making a few bucks. The exterior of the house is the first impression for buyers
Landscaping is Key
Make sure the grass is mowed weekly. The paint is cheap—paint areas where it is needed. A fresh coat of exterior paint will make a world of difference. Always choose a neutral color and nothing that sticks out, like orange or purple. Make sure there are no broken windows. Make sure there are no holes or missing siding/brick. Any cracks in the driveway should be fixed. If you have a blacktop driveway, a fresh coat of blacktop will cost you less than one hundred bucks. Get the opinions of multiple real estate agents and see what they suggest.
Check out the Competition
Drive by the listed homes that are comparable to yours. If you can invest in hiring a professional landscaper, you will get a great return on your investment by mulching and planting shrubs/plants or flowers where needed. Make sure the garage is decluttered. Bikes, lawn equipment, and junk should all be removed and stored at the storage, donated, sold, or thrown away. Having a presentable home will not only get you higher purchase offers, but your home will sell faster than your competition.
Can You Get a New Mortgage While Selling Your House: Hiring A Listing Realtor
When you are ready to sell your home, you must hire a listing real estate agent. Your listing agent will advise you of things to do before listing the home. Your listing real estate agent is your representative and acts in your best interest on your behalf. The real estate agent is a licensed professional who knows the area, the competition, the recent sales, what sells and what doesn’t, and has a goal to get top dollar for your home. But yet, your real estate agent will want to sell your home as soon as possible.
The agent will discuss the recommended listing price. The listing price is normally based on recent comparable sales and comparable homes currently listed but not yet sold. Listing agents do not get paid unless the home sells. The listing agent will advise you on stage the home for the least possible cost. The listing agent pays all costs for marketing materials.
Depending on the real estate agent, the agent may hire a staging consultant or a professional photographer to start the marketing campaign. There are listing agents who network with other agents to find potential buyers looking for homes similar to your home, and listing agents network with other professionals such as loan officers, title companies, attorneys, contractors, home inspectors, appraisers, insurance agents, and property managers. Listing agents can help refer you to just about anyone who they had prior experience and are reputable.
How Can You Get a New Mortgage While Selling Your House and Get Pre-Approved
Homebuyers need an iron-clad pre-approval letter before shopping for a new home purchase. Make sure you choose a lender and loan officer you are comfortable with. One of the biggest nightmares you will ever experience is hiring an incompetent loan officer who does not return calls/texts/emails and issues a sloppy pre-approval.
Talk to several loan officers. Interview them. Anyone with an 800 credit score, low debt-to-income ratios, no derogatory credit tradelines, and a high down payment can get approved anywhere. However, lower credit score borrowers and borrowers with less than perfect credit may need to choose a specialty lender/broker that has little or no lender overlays, like Gustan Cho Associates.
Gustan Cho Associates is one of the few national mortgage companies with no lender overlay. Most loan officers will be professional and know what they are talking about. However, who is the best loan officer that you feel comfortable with? Remember, you must give your loan officer every aspect of your personal and financial information. Who is the person you can trust most? Your loan officer should be available to talk to you seven days a week, including evenings and holidays. Once you decide who your lender and loan officer is, the next step is getting qualified and pre-approved. Once pre-approved, it is time to shop for your new home.
Can You Get a New Mortgage While Selling Your House: Shopping For New Home
If you are buying your new home nearby where you are selling your current home, see if your listing real estate agent can represent you as the buyer’s agent. If you are moving to a new area or out of state, you will need a new real estate agent to represent you. You need to hire an experienced buyer’s real estate agent who knows the area. The agent needs to be an expert in the area, like knowing the school districts, parks, community centers, data, property tax rates, and general real estate assessments. Real estate agents know where to refer clients who need bridge housing if they need a temporary place to stay after closing on the exiting homes. An experienced agent is necessary when shopping for a home in a hot booming seller’s housing market.
This guide on can you get a new mortgage while selling your house was updated on July 2nd, 2023.
