How to Buy and Sell a Home at the Same Time: A Practical Guide

Trying to buy and sell a home at the same time can be stressful, but it doesn’t have to be impossible. Whether you’re a first-time seller or you’ve done this before, there are strategies that can make things smoother. Trust me, this doesn’t need to be the overwhelming experience it might seem at first.

Let’s break down your options and what you need to know to make this process work for you.

Why It Happens

Buying and selling a home simultaneously isn’t uncommon, but it’s tricky. You might be wondering: How do you handle both mortgage payments? Where do you come up with the down payment? Can you even make a non-contingent offer? 

The good news is there are solutions, and with a little strategy, you can get through this without too much stress.

Can You Make a Non-Contingent Offer?

When you’re buying and selling at the same time, one of your first options is to make a non-contingent offer. This means you’re making an offer on a new home without needing to sell your current home first. Sounds ideal, right? But to do this, you’ll need to qualify for both mortgages until your current home sells.

For example, even if you’re certain your current home will sell quickly, the bank will still want to see that you can afford both mortgage payments. This can stretch your budget, but many loan programs allow for a higher debt-to-income ratio, which could give you more flexibility.

Pro Tip: If you can’t access the equity in your current home immediately, you can still make a strong offer by sourcing your down payment from other places like savings, a 401(k) loan, or even a gift from family.

Bridge Loans vs. Recasting: Which One Is Right for You?

A bridge loan is one option for accessing the equity in your home to use as a down payment. You’ll get a loan against your current home’s equity to purchase your new one. The downside? Bridge loans come with closing costs, and some buyers opt not to go this route because it feels like a temporary solution.

Another option is a recast. With a recast, you qualify for the new mortgage using a down payment from sources like savings or a 401(k). After your current home sells, you make a large principal payment, and your mortgage payment is recalculated based on the new, lower loan amount.

Pro Tip: A recast can be a great choice if you want to keep your current mortgage rate. You’ll avoid the closing costs and hassles of refinancing.

What to Do If You Need to Make a Contingent Offer

If the numbers don’t add up for a non-contingent offer, you may need to go with a contingent offer. This means you’re only able to buy the new home if your current home sells first. To make this offer stronger, you’ll need to show you’re pre-approved and ready to close.

When you make a contingent offer, make sure you’ve done the groundwork. You should have all documentation—income verification, assets, and any other relevant paperwork—ready to go. This shows the seller that you’re a serious buyer, and it gives you a better shot at getting your offer accepted.

Pro Tip: Work closely with your realtor and lender to show the seller that your offer is a good one. A fully pre-approved loan can give the seller confidence that the deal will go through without surprises.

Can You Close on Both Homes the Same Day?

Yes, you can actually buy and sell on the same day if you time it right. The key is making sure both closings are scheduled close enough together. For example, if you sell your current home in the morning, you can close on your new home later that day. Timing is everything here, and it’s one way to avoid any gaps between moving out and moving in.

If this sounds like a tight timeline, you can also consider a rent-back agreement, where you sell your home but stay for a short period, renting it back from the buyers until you’re ready to close on your new place.

FAQs:

Buying and Selling at the Same Time

How can I afford both mortgage payments?

You need to qualify for both mortgages. Some loan programs allow for higher debt-to-income ratios to help buyers afford two payments for a short time.

What’s the difference between a bridge loan and a recast?

A bridge loan taps into the equity of your current home to fund the down payment on your new one. A recast lets you make a large principal payment on your new home after your old home sells, reducing your mortgage balance and recalculating your payment.

How can I make a contingent offer stronger?

Make sure you’re fully pre-approved with all documentation in place. This gives the seller confidence that you’re ready to close quickly once your home sells.

Wrapping It Up

Buying and selling a home at the same time can be a lot, but it’s possible with the right strategy. Whether you go for a non-contingent offer, use a bridge loan, or recast your mortgage, the goal is to make the process as smooth as possible. Be clear on your options and work with the right professionals to minimize stress and get the outcome you want.

As always, if you have any questions or need guidance through the process, I’m here to help.

Rebecca Richardson, “The Mortgage Mentor,” is a nationally recognized mortgage advisor based in Charlotte, NC, lending in multiple states across the U.S. With over 20 years of experience, she helps buyers navigate home financing with confidence—whether you're buying your first home, investing, or navigating a major life transition. Rebecca is especially known for her work with veterans, real estate investors, and clients with complex financial needs. As a top-producing loan officer