How To Move Into Your New Home Without Selling Your Current One

If you’re planning a move but want to secure your new home first, you’ve got options. Here are three ways you can buy your new home before selling your old one:

1. HELOC. A HELOC, or home equity line of credit, is a 2nd mortgage with the flexibility of a credit card. The borrowing limit is generally up to 85% of the equity you have in your home, but the approval process is similar to getting a regular mortgage, so it takes a few weeks before you can access the funds. Once it’s set you can borrow from this line of credit for the downpayment or entire purchase price of your new home, allowing you to take your time selling the old one.

2. Bridge loan. Another option to consider is a bridge loan. If you’ve found your new home and have good equity and credit, your lending institution may lend you up to 80% of the combined value of both the new and old homes, allowing you to purchase the new home, move in, and then take your time selling the old one.

3. Third-party buyer companies. Third-party buyer companies assess the value and equity of your current home, then buy your new home with cash. This can help you win bidding wars in a competitive market because cash offers are more attractive to sellers. You can move into the new home while the company holds the deed, then sell your current home at your own pace and use the money you earn from it to buy your new home from the third-party company, who will transfer title to you.

While these homebuying alternatives provide options, it’s important to understand the service charges and interest rates involved before jumping in.

If you want to explore any of these options further, reach out to me today for a free consultation. We can chat by phone, Zoom, or grab coffee. I look forward to helping you reach your goals!