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The Truth About Buying Your New Home Before You Sell Your Old Is About To Be Revealed.

 

Real Estate


You Can  Buy Your New Home Before You Sell Your Old One

Buy Before You Sell. Too Risky Right? Wrong!

Common Home Owner Myth: I can't buy a replacement house without first selling my old one.


That is the way it's supposed to work right? You cant have a replacement house without getting obviate the old one.


Not so.


Take, for example, the story of 1 of our clients. that they had a house (beautiful house, worth about $600,000) and had no intention of leaving.


However, at some point, this house in their neighborhood went on the market. you recognize the house. it's the one where whenever you pass, you would like it had been yours. Unfortunately, this house would never be purchasable.


Out of the blue, the unbelievable happens: the house goes up purchasable.


Now, most would call this a stroke of luck, then it might dawn on them…


We can't have that house. Obviously, something unforeseen has happened, and they'll need a quick sale. expecting us to sell our house first, won't be acceptable to them. I assume we are out of luck.


Luckily, this client called us to structure a secure way for him to urge his dream home today, buy a while to urge his old house sold, make both homes affordable during the marketing period, and leave him the precise same future financing on the new home he otherwise would have had.


Now, that's a tall order! But we did it. And, so can you!


Here are 2 ways to shop for a replacement house without selling your old one first.


Pull the equity out of your existing house employing a Home Equity Line of Credit or a 2nd mortgage. If you'll snap your fingers and sell your home, this is able to be what you'd use to shop for the new home anyway. So just catch on out now. Now, reserve enough of this money to form your old house payment for 6-12 months. Your house will take this long to plug and with the cash put aside you won't be tempted to require a low-ball offer. Use the rest as a deposit and obtain your new mortgage to finish the acquisition. When the old house sells, both mortgages are liquidated and you're left with one house and one mortgage very same situation you'd have had if you sold your old home before you purchased the new one. But you accomplished it without the wait and therefore the missed opportunity!


Another way to realize an equivalent result minus the old house payment reserve is to use an 80% mortgage and a 20% 2nd mortgage also called 100% financing, to shop for the new house. You won't need to put any money down and when your old house sells, you employ the proceeds to pay off the 2nd. the sole difference is you don't get any extra cash to use to offset two house payments during the marketing period. Many of you, have existing lines of credit or other sources, so this might not be necessary.


Both scenarios leave you with great permanent financing for the new house.


The 80/20 or 100% financing scenario costs a touch more in discount points than a standard structure, but it's only to the prices and not the speed. ask our website to find out more about 100% financing in our free report called, Buy With Zero Down!.


The biggest hurdles you'll get to clear are 1) making two housing payments and 2) getting authorization with two housing payments.


Here's how you are doing both:


When you pull the cash from your existing house, reserve enough to hide up to 12 months of mortgage payments for the old house while it's on the market. That way you don't need to begin of pocket for the payment. Gee, that was easy! Hurdle 1 cleared!


Since most loans are approved through a computer lately, you'll need a mortgage broker who knows the way to use the automated approval computer systems that FNMA and other agencies and lenders use. These approval systems are a Godsend when it involves creative financing in today's modern mortgage arena. it's going to seem strange to you, but to the pc, your financial picture and your need for financing, are simply numbers. It doesn't care that a number of those numbers include 2 housing payments. The new systems are allowing many of our clients an approval with abnormally high debt ratios, sometimes as high as 60%! this is often very prevalent, especially with clients who have strong credit and assets after closing like a 401K. this is often your window for approval. Now, you recognize you'll not be spending 60% of your income on debt, because you set the cash aside in Step 1 to hide the old house payment, but the pc doesn't know that or care. If done right, you'll get the approval even with very high debt ratios.


Note: Beware! Don't let an unscrupulous mortgage broker get you to commit mortgage fraud with great care you'll buy before you sell. persist with our plan. If you get approved fine. If you don't, accept it. a method they'd break the principles to urge you approved is to sophisticate a lease agreement on your old home to offset the payment and show the pc a lower debt ratio. Don't do it is a Federal crime!


How does one start?


1) Get approved through the pc system

2) If you would like to tug equity out of the existing house; start it now

3) Write an offer on the new house

4) When the offer is accepted, but the existing house up for sale; not before


At Integrity mortgage, we use these strategies to urge our clients into houses a day. So don't worry. it's okay to exit the box sometimes and put away a number of outdated concepts about financing a house.


Lastly, don't forget you'll get tons more for your old home with our revolutionary thanks to selling your house without paying a true estate commission, (6% commission on a 600,000 home is $36,000!). Look below in my resource box for more information.


Happy House Hunting!

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