This is the most commonly asked question I get from home owners:
Can I buy before I sell?
Alright. I’m going to be blunt. I’m not the kind of girl who is going to tell you exactly what you want to hear just to get a sign in the yard.
Here’s the deal: You need to be really, really rich to buy before you sell. It’s harder than it used to be to qualify for two homes at the same time. It can be done! But you must be very financially sound, you need to have a lot of money in savings and a low debt to income ratio. Meaning you need to have a lot of income and little debt. And then a lender is going to be able to give you a bridge loan or pre-approve you for two loans. There are lots of lenders, but my favorite is Mike Mancuso from First State Bank. He pulls off so many miracles for me! He did a loan for a client of ours in just two and half weeks.
You really should sell before you buy, even if you’re rich enough. It’s good to know how much money you’re going to have in hand and you never know that until your home has gone under contract. You don’t know it’s EXACT worth until you have an offer that you’ve accepted.
Don’t do what I did a few years ago — we did buy before we sold. We were financially sound, and I love love love my home but we ended up owning two homes for longer than I would have wanted because we were emotionally attached to the value of our home.
So the best course of action if you’re considering making a move is this:
- Evaluate 2 or 3 realtors to see who you feel the most comfortable with.
- Hire one of them.
- Pick accurate pricing based on many advisors (NOT zillow.com!)
- Get your home on the market, get it under contract, and then find the home of your dreams.
It’s taking a big leap of faith, but it is a great time to be a home owner. We are seeing unprecedented appreciation rates, unprecedented low interest rates, it is a phenomenal time to invest in a home. Even if we get a dip in the market, it’ll bounce back in a big way.