Buying And Selling A Home At The Same Time Without Stress
This Article Is About Buying And Selling A Home At The Same Time Without Stress
With all the chaos going on throughout the United States surrounding the COVID-19 coronavirus, many families have decided to pack up and move their families. There are many reasons for Americans relocating. Some families are moving to work, others are not happy with the way their local municipalities have handled the pandemic, and others do not feel their states are run correctly. Regardless of the reason for your relocation, in this blog, we will detail how to sell your current home and buy another home. This homebuying and mortgage process can be incredibly stressful. This is because there are a lot of moving parts. Gustan Cho Associates have helped numerous families move and are prepared to help you and your family! There is no reason why buying and selling a home at the same time has to be stressful if it is coordinated and planned carefully.
How To Prepare And Plan Buying And Selling A Home At The Same Time Without Stress
If you have a home to sell, this can add to the already stressful process. Getting your home prepared for the market is stressful enough. Once you go under contract, the stress level goes even higher. It is important to stage (decorate) your house as elegantly as possible to receive the maximum amount of money when selling your property.
Once you are under contract, you will need to stay on top of your seller’s financing, make sure they are actually going to close, and more importantly, close on time. During this time, you also need to pack up all of your belongings and prepare to move. This part of the process is incredibly time-consuming and stressful. If you feel like the financing may fall through from your buyer, this will have a trickledown effect on you buying your next home. In today’s crazy real estate market, many transactions are taking backup offers to be safe. You will want to talk to your real estate agent to see if this is a possibility.
Strategic Planning When Buying And Selling A Home At The Same Time Without Stress
Let’s assume you are under contract selling your current home. It is possible to close on your current home and buy your next home on the same day. This will require good planning and a highly skilled mortgage team to make sure this happens. If the buyer of your current property is also contingent on the sale of their property, this can cause an even larger ripple effect.
Unless you have a giant stack of cash to rely on, you need to stay on top of all parties throughout the entire process. Many states such as Illinois utilize real estate attorneys to make sure all parties are on the same page. But this is not the case in most states. Your real estate agent can only do so much. Some of the responsibility will be on you.
Getting Approved For A Mortgage And Working With Your Lender
As far as getting your mortgage clear to close, you will need to work directly with your mortgage team to make sure all required items are sent in in a timely fashion. The faster you are able to get documents over to your mortgage team, the faster you will have your clear to close. Once you are clear to close, you are then relying on the buyer’s funds. If you are relocating across the country, this can only add more stress to the process. For more information on buying and selling on the same day, please contact Mike Gracz on 630-659-7644 or send an email to [email protected].
Buying And Keeping The Exiting Home As A Rental
Some families may decide to keep their current house and buy another one. Depending on your debt to income ratio, this may be a possibility. Even if you have not had a history of being a landlord, if you have a 25% equity position (or greater) in your exiting property, you may utilize up to 75% of the fair market rent to offset your mortgage payment.
The fair market rent is calculated based on comparable rents paid in your area determined by a licensed appraiser. They will use Fannie Mae form 1007 (or other agency required forms). Please keep in mind this qualifying income can only be used to offset your current mortgage payment including your taxes and insurance and any homeowner’s association dues. The 75% of your fair market rent can only cancel your mortgage payment and not be counted towards extra income for qualifying on the next property. This is important. Please reach out to our team for further explanation.
Tax Liability When Buying And Selling A Home At The Same Time Without Stress
Are there income tax implications when selling a house? Gustan Cho Associates always recommend you reach out to your tax professional for specifics. We are not certified tax professionals and cannot give you advice on filing taxes. But it is important to consult with your accountant on any taxes that may need to be paid with the sale of real estate. This amount could hinder the available funds you have.
Some individuals are in a financial position where they are able to buy a home first and then sell their current home. This can dramatically reduce stress as well as moving costs. Having space to keep your belongings during the move can really help the process. Many agents have told us that during the ages of COVID-19 coronavirus, many buyers are using this process. They think it may be due to the fact more people are working from home and need more space than before. So, while looking for a new home, they keep their current office set up. Keep in mind, maintaining ownership of your current home before buying the next home does significantly change your mortgage qualifications. It is important to reach out to Gustan Cho Associates to go over your unique situation.
Having Two Mortgages At The Same Time Until The Exiting Home Sells
Most individuals and families we speak with have the same questions when they reach out. Can I afford to pay both mortgages? Do you offer bridge loans? What kind of assets do I need to purchase the next home? Am I able to rent out my current home? The general rule of thumb is if you’re tight on money as it is, you will need to sell your house first. If you have strong income and large assets available, typically you can keep your current home and move to the next property, then sell your old home.
Qualifying For A Mortgage With A Lender With No Overlays
With all of the information provided in this blog, you can see why picking a professional mortgage team is very important. The team at Gustan Cho Associates is available seven days a week and here to work for you. We will answer any questions you have surrounding buying and selling your property. If we don’t know the answer, we will pair you with a licensed professional who will. We work alongside many real estate agents as well as real estate attorneys. We look forward to helping you get into a home that is perfect for you and your family. Feel free to call Mike Gracz at Gustan Cho Associates at 630-659-7644 (or email [email protected]) with any questions. Text us for a faster response.