Many times a buyer needs to first sell their current home before the purchase of a new home can take place. This type of sale takes a lot of planning because there are financial consideration, specific timing of dates and deadlines, and contractual items to consider. It’s important to check with a seasoned Realtor and an experienced Lender to see what needs to take place before you start looking for a new home.
Today, Deborah Elliott-Shultz is joined by Ryan Herbig of American Liberty Mortgage to discuss some of the financial things to prepare you for meeting with a Lendor about selling your current home and buying your next home, as well as what order the process needs to take.
First, you will want to determine what type of home you will be buying. Will this be a home that you will live in? Will you be listing it as an Airbnb or something similar? Are you buying the house to flip it? Each of these have different limitations and opportunities which an experienced Lender will be able to address with you. As an example, some HOA’s are banning Airbandb opportunities in their neighborhoods. Or if you are planning to buy a house, renovate it, and flip it in short order, there are special loans for those.
It’s important to be forthcoming and honest with your lending broker because they look for the best deal possible for you based on your financial information. If you try to hide something, it will more than likely come out and could cause big problems.
Second, if you are told by your Lender that you have to sell your current house before you can buy a new house there are a lot of moving parts to make these contracts work. A seasoned Realtor and Lendor will know which parts of the contracts will need to be addressed, will sync timelines and schedules, and will help you keep track of it all. In the contract is a list of Dates & Deadlines. If one is missed, a client could not only lose their earnest money, but could also lose the home because the client is out of contract.
Third, don’t take real estate or lending advice from family, friends, or others who are not seasoned professionals. Every contract and situation is different!
In today’s broadcast, you’ll hear about a horrific story that Deborah and Ryan had to deal with because somebody who was not a real estate professional gave advise about the Dates & Deadlines of a contract that could have had far reaching results impacting at least 5 home sales. Come listen as Deborah and Ryan discuss this and many other details about what it means to simultaneously buy and sell a home.
To reach Ryan Herbig of American Liberty Mortgage at (719) 228-6055.
As always, if you have any questions about today’s topic or anything real estate, Deborah can be reached at (719) 641-1357.
And remember, it’s never too late to become the person you were meant to be.