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  • Rebecca Richardson - Mortgage Consultant

Buying & Selling Your Home At The Same Time

What do you do when you have a home to buy, but also a home to sell?

This situation is actually very common.



There are typically two different paths you can take.


When you’re making an offer on a home, it will be considered either contingent or non-contingent.


Contingent means it is contingent on the sale of your home. That may mean you need to sell your home because you won’t qualify if you need to pay both mortgage payments.

Or, it may mean you need to sell to get the equity out of your home to have a down payment for the new home.


Non-contingent means you do not need to sell, in order to buy.


You can qualify with both mortgage payments, with your current home and the new home, and also you have other assets that you can use for the down payment of the other home.

Typically, in this market, sellers want to have as little resistance as possible. This means that they will favor non-contingent offers over contingent offers.


Unless you have a lot of disposable income or valuable assets to put up against the loan, lenders will be hesitant to take a risk in lending you the money for a second mortgage.

Also, having a home sale that is contingent makes it difficult for the seller to have faith in the transaction. The seller will have to rely on the buyer to successfully sell their home at a reasonable price.


To manage this situation, you and your lender can come up with strategies that allow you to be non-contingent, even though the plan is still to sell before you buy.


Thankfully, precedence is on your side. Many homeowners successfully sell their home and then purchase a new one, without relying on temporary housing in the interim.

For example, consider if there is a way to qualify with both mortgage payments or if there is another source for the down payment.


Or, you can put down a smaller down payment and later take the proceeds from your sale and either reimburse yourself or put it towards the loan on the new home.


Another tip is to list your home as soon as it's ready and to narrow down your options for potential homes you want to buy so there are fewer delays.


My job, as your mortgage consultant, is to help you come up with the best strategy to get the home you want, in the current market environment that we’re in.

Although it may seem intimidating, buying and selling a home at the same time happens often.


So please know, your Realtor and I are here to work together as a team to help you come up with a successful strategy.


Are you ready to start buying or selling your home? For consultations and more information, you can email me at (rebecca.richardson@wyndhamcapital.com) or find me on Instagram (@the.mortgage.mentor).

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