Strategies For Buying and Selling a Home at The Same Time Metadata Author: Bond Street Mortgage Publication Date: Wed, 16 Jan 2019 13:00:00 +0000 Link: https://bondstreetloans.com/blog/home-buying-guide/strategies-for-buying-and-selling-a-home-at-the-same-time/ SEO Information Meta Title: Strategies for Buying & Selling a Home with Bridge Loans Meta Description: Learn smart mortgage strategies for buying and selling a home simultaneously, including bridge loans and short-term rental solutions. Content Details Categories: Home Buying Guide Post Content If you're already a homeowner and you're getting ready to buy a new home, you know it's tricky to buy and sell a home at the same time. There are lots of questions about how to handle this scenario. What if your old home doesn't sell quickly? Will you have to make two mortgage payments? What if you sell and the new owners want to move in before you close on your new home? Depending on your situation, here are some strategies available to you. Get a Bridge Loan If you find yourself facing more than one mortgage payment - one on your old house and one on your new house - consider taking out a bridge loan to pay the monthly mortgage on the old house. Bridge loans are a solution to a temporary problem. When your old house sells, you pay off your bridge loan and you're left with just the one mortgage payment. Move Into a Short-Term Rental If your old house has sold and the owners want to close before you can close on your new house, you could move into a short-term rental. This could be an apartment with a short-term lease. Or it could be a long-term hotel accommodation. You'd likely have to move your furnishings into storage; again, only for the short-term until your new house is available. Ask if You Can Lease Back Your Home You could ask the buyers of your current home to allow you to rent your home until you're able to move into your new house. This is called a lease-back. It's not ideal to pay rent on your own house, but it saves you from having to move twice. This strategy usually only works if you already have a new house deal, so the owners of your old house have a known estimated timeframe when you'll be moving out. It's tricky trying to figure out the arrangements when you're buying and selling a house at the same time. But one of the strategies mentioned above will likely work out for you. A trusted mortgage advisor with Bond Street Mortgage is a valuable resource and can help you secure the best financing options while you are transitioning into your new home. Frequently Asked Questions Q1: What is a bridge loan and how can it help when buying and selling a home simultaneously? A1: A bridge loan is a short-term loan that covers mortgage payments on your old home while you purchase a new one. Once your old home sells, you pay off the bridge loan, leaving you with just one mortgage payment. Q2: What can I do if my buyers want to move into my old home before I close on my new one? A2: You can move into a short-term rental such as an apartment with a short lease or stay in a long-term hotel, possibly storing your belongings temporarily until your new home is ready. Q3: What is a lease-back arrangement when selling a home? A3: A lease-back allows you to rent your current home from the buyers after selling it, giving you more time to move into your new home without relocating twice. This usually works if you have a confirmed closing date on your new house. Q4: Will I have to make two mortgage payments if my old home doesn’t sell quickly? A4: Possibly, but you can avoid this by using strategies like obtaining a bridge loan to cover your old mortgage payments temporarily. Q5: Who can help me find the best financing options during the transition of buying and selling a home? A5: A trusted mortgage advisor, such as one from Bond Street Mortgage, can guide you through financing options and help manage the complexities of buying and selling simultaneously. FAQ Schema Markup