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Thinking about selling your current home and wondering how best to purchase your next home? While everybody's circumstances are different, there are a myriad of financial strategies to consider.
Recently, numerous people have told me they would put their homes on the market if they felt comfortable with a tailored plan to protect their best interests.
So, I have put together some options to review. And to make these plans work, you need to assemble a team consisting of an experienced real estate agent and a nimble loan officer who can explain various mortgage and financial strategies that can protect your bottom line and minimize a potentially stressful situation.
Assuming you have a good deal of equity in your current home, apply for a home equity loan and use that money to fund your next home before selling your current home.
Borrow against other assets you might own to include your investment portfolio to use as a down payment on your next home.
Sell your home first and include a contingency that you must find a replacement property before closing on your current home. Often buyers will grant you a couple months to find your next home after they know you have agreed to sell them your home.
Sell your home first, and negotiate with the buyers a rent back provision which allows you to stay in your former home for a few months while you look for your next home. You pay rent to the new owners and avoid having to move twice.
Give yourself the gift of time, and sell your current home first and moved into a rental property. This gives you the money for the next purchase and allows you the luxury of taking the time to find your replacement property.
Consider selling your home first, and purchasing a RV to live in or move into short-term rentals as you contemplate your next move.
Turn your current home into a rental property, which will provide you with additional income. By converting your home residence into an income property, you can take advantage of the possibility that the property will appreciate more over time.
Sell your current home, and purchase a lower-priced property that you can convert later into a rental property. This strategy gives you the freedom to take your time purchasing your ultimate dream home.
If any of these ideas resonate with you, your next step should be reaching out to me so we can devise a game plan. I can then refer you to an outstanding local loan officer who can go over some of your options based on your individual circumstances.
Whether you decide to do something now or later, it is always advantageous to fully understand your best choices when considering the sale of your current home.
Tracy Walczak
406-360-4662
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