🏡🤔Need To Sell Before Buying Your Dream Home... What Now?
So you want to buy your dream home. That is incredibly exciting and you should be excited for the upcoming process.
But wait a second. You currently own a house and will need to use some or all of the proceeds from the sale as a down payment on your dream home. Plus, you probably want to have a loan for a primary residence, not a loan for a second home or investment property.
So you need to sell your home before buying a new one and you might not want a period of homelessness in between ownership of each property. Guess what, there doesn't have to be a gap and you can move from the old house to the new one in one trip with the moving truck. OK, this sounds daunting, but done correctly, this process does not have to be a cause of stress.
I call this coordination a "sale/purchase." Any of you that have hired me before, you know that I have a name or term or a definition for everything. This is one of those.
There are some more complicated methods of handling sale/purchases that involve lease backs or renting a property before moving. For the sake of brevity I am going to stick to the basics.
There are 3 basic ways to structure a sale/purchase.
1) Sell the old house and then look for a new one.
2) Find the dream house, and then start marketing your home.
3) Get your house ready to sell, and then start looking for the new one.
Lets take an in depth look at all three: