Thursday, January 14, 2016 / by Extreme Home Selling Team
Selling to Buy at or Near the SAME Time!
There are many reasons to effect simultaneous transactions:
A) Reduce Double Mortgage Payments!
B) Transfer Equity for Tax Savings
C) Desire to purchase is greater than renting
and so on for each individual situation...
If you are in a position to carry both mortgages, but need cash to close, consider taking out a HELOC on the current home if allowed. Now you are better armed to shop AND close. Make these arrangements well in advance of the sale as Lenders get sticky about paying it off in a short time (they like the interest accruing!). You can also talk to your bank about a Bridge Loan but this usually requires an unconditional Contract for Purchase on your home, all contingencies removed, ready to close.
What to do if there's not enough income or cash? You're couch-surfing at Mom's again! Just kidding!!
If you can't pull off the purchase of your next home without the equity in the old home, you have to sell before you buy. This is where the back-to-back transactions come in, HOWEVER, the Next Home Lender will want conclusive evidence that the Old Home is absolutely positively SOLD with the unconditional Contract for Purchase as outlined previously. Most Lenders will want to see a significant non-refundable deposit from the Buyer with your Home Sale closing prior to your Home Purchase. This way, you don't have to find temporary housing or furnishings storage, nor carry two mortgages.
The Extreme Home Selling Team specializes in Simultaneous, Back-To-Back Transactions!
Call us when you have that Specific Time-Sensitive Deal that MUST go through On Time!
ROBERT "CHIP" DEACON, Broker-Associate
941-584-8400, 9000
Jeff Kaplan, Customer Care Team
Shari Shepard, Team Admin
Laura Dobrin, Realtor - Buyer's Agent

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