Should
I Sell Before I Buy?
For
those of you who are currently a home
owner, and are interested in purchasing
a new home, you may be asking yourself the question “should
we sell our current house before we buy another one?”
My
answer to this question would be yes. Before you buy
a new house, it would be wise to sell
your current home first. An ideal circumstance would be to make the
settlement
for both houses on the same day, or at least within the same week.
The
problem with purchasing a new home before you sell your current one is
that you will be carrying two mortgages. If your current house is not
going to settlement for one month after the purchase of your new home,
perhaps you will survive. What you do not want to end up doing is carrying
that mortgage for more than a month.
Now
lets suppose your old house is going to settlement within a month after
the purchase of your new home. That is fine, but what if the potential
customer sends a home
inspector through your house and they find a major problem or two.
Another possibility is a pest
inspector might come across termites or termite
damage.
Both
of the above scenarios are very realistic, and could wreak havoc on your
financial situation. Number one, getting things fixed to satisfy the potential
buyer takes time and money. Number two, the longer the job takes, the
longer you have to carry that mortgage.
So
weigh your options carefully. If at all possible, have your current home
sold before purchasing a new one. Or have it arranged that you won’t
be into your new home until the settlement is complete on your old home.
This way you will only be paying a mortgage on one property and not have
the financial burden of having to pay a second mortgage.
Using
a Mortgage Broker
Home
Appraisal
Doing
Your Mortgage Homework
Don't
Let Bad Credit Stop You
First
Time Home Buying
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