Just buying a house can be stressful enough, but throw in the fact that many buyers are also trying to sell a house at the same time, and you’ve got the perfect recipe for losing one’s mind. Ok, maybe that’s a tad bit dramatic, but the point is, buying and selling a house at the same time is a complicated, and even tense, experience. To help you better navigate this unique real estate transaction, we’ll outline some things for you to keep in mind, to make sure you’re as prepared as possible … and hopefully get you through the process without needing a therapist.
Financial Standing
One of the single greatest factors in getting approved for a mortgage, your credit score is especially important when trying to buy and sell at the same time. The biggest concern here is whether or not your credit score is in the right range to get approved for a second mortgage. Remember, you’ll likely buy before you sell, which means you’ll need to make two mortgage payments for a while. So, it's vital as you begin the process that you ensure you’re in strong financial standing. And not just for the bank’s sake, but more importantly so you’re not taking on too much all at once financially.
Contingency Plan
It’s always a good idea to prepare for the unexpected as much as possible, just in case certain details of your plans temporarily fall through the cracks. Specifically, we’re talking about making sure to have a place to stay if you sell your home and close before you’ve found your next home. Being prepared for this scenario will greatly reduce the stress of the situation. So hopefully, your parents or in-laws don’t mind you crashing in their basement for a while if necessary.
Emergency Fund
Having an emergency fund is an essential part of any financial plan, but it’s especially crucial when you are buying and selling a home at the same time. If you’ve ever sold a house before, you know there are likely going to be times when unexpected expenses arise – everything from repair costs to your current home after an inspection, to possibly taking on a second mortgage for a little while. Plus, it helps to be prepared for moving costs and any storage expenses that might come up, especially if you have to stay somewhere temporarily.
Sellers Max Advantage
You might not know it, but lenders can actually provide much-needed help during this process. Take our Sellers Max Advantage program for example. This program offers a 1%* credit on Conventional or Government loans or up to $3,000* credit on Jumbo loans, helping ease negotiations and attract more buyers, while also helping you get the most money out of your sale. These benefits go a long way toward easing the process of buying and selling homes at the same time – especially if you’ve found your next dream home before even listing your current home.
The best news about buying and selling a house at the same time is you don’t have to navigate it alone. Hopefully, you’re already working with a top-notch agent who can handle most of the heavy lifting. But remember a lender like Guardian Mortgage can also be a tremendous help through the process. If you have any questions about buying or selling all at once, or about our Sellers Max Advantage program, reach out to a Guardian Mortgage Loan Originator today.
*Toward closing cost, rate reduction, and/or prepaids. Cannot be used for down payment. Listing Incentive Agreement must be dated, signed, and returned prior to signing contract. Program cannot be used in conjunction with the Heroes Program or combined with any other Affinity incentives. Purchase loans for primary residence only. Loans subject to credit review and approval. This is a temporary offer and the lender credit is not tied to the interest rate. Limitations apply to the credit amount based on loan amount. Consult your Guardian Mortgage loan originator for details. Certain terms and restrictions apply. Program available only to qualified borrowers. Program subject to change without notice. Underwriting terms and conditions apply. Loan subject to credit review and approval.
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