What happens if your house sells before you buy another one? Don’t worry, you have options.
In this market, selling a home before you can find the next one is happening more often. That’s because inventory levels are extremely low and the market is very active. Multiple offer situations are also on the rise. If you find yourself in this situation, you have two main options.
First, if there is enough equity in your house and you have decent credit, your lender should be able to give you a bridge loan. The bridge loan allows you to purchase a house first and then, when your house sells, you have two or three months of just interest payments. This is a good option because you don’t have to move twice.
If you can’t get a bridge loan, consider finding a short-term rental. This is a good option if you are buying a new construction property. Most homes take 10 to 12 months to build, and it is very easy to get a 10- or 12-month lease.
Choosing a bridge loan or short-term rental can take a lot of stress out of the process.
Remember, a qualified Realtor can help. Most good, qualified agents work with a good lender. Those lenders will tell you straight up whether you’re eligible for a bridge loan. The good news is that many people can do the bridge loan these days because home values are up and your equity is back where it should be.
If you have any other questions, give me a call or send me an email. I would be happy to help you!