Are you buying and selling a home simultaneously? To prevent the process from turning into an overwhelming experience, here are some tips you should follow.
Buying and selling a home at the same time can be a huge endeavor: the paperwork, deadlines, and research can be highly stressful, but through it all, you should ensure that you have mortgage life insurance.
Mortgage life insurance is an innovative product that is designed to offer you total peace of mind. You'll know that your loved ones can stay in the family home should you become disabled, critically ill, or die prematurely.
Some of the biggest benefits of mortgage life insurance include:
- affordable
- requires very little underwriting
- approved claims provide your family with a free and clear mortgage
- ensures that your loved ones can have financial stability during one of life’s most difficult moments
Buying & Selling a Home Simultaneously: What You Need to Do
Selling a home is a huge project, but couple it with buying a home simultaneously, and things can quickly turn very stressful. This is mostly because as a buyer and/or seller, you are at the mercy of the market and potential buyers.
To help make the process a little easier, here are some things you want to keep in mind when you’re buying and selling a home at the same time:
Selling a House Before Buying
If you’ve decided to sell your current home first, before buying a new one, here are some steps you can take to make the process a little more seamless:
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Make an offer with a settlement contingency. List your house first, and once you have an offer (but before closing), you can start looking for a new home. When you find a house you love, you’ll submit an offer with a settlement contingency, meaning that you’ll buy the home dependent on the sale of your existing home.
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Find a temporary rental place: While this means you have to move twice, often closing one sale before starting another can be the least stressful option. This will give you more time to find your dream home.
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Sign a rent-back: This is when you go through with the sale of your home, with the agreement that you can rent the home back from the new homeowners for 60-90 days. This will give you more time to shop for your new home, while also giving you access to the money you got from the sale of your old house.
Selling a House First: Pros
- You know exactly how much money you’ll have available to put towards buying your new home.
- It’s easier to get a new mortgage when you’ve sold your old home, and you won’t have two mortgage payments holding you back.
- It can be less stressful to close the book on one chapter before focusing on your next move.
Selling a House First: Cons
- You’ll likely have to find a temporary rental, meaning you’ll have to move twice.
- Your storage and moving costs can add up.
Buying a House Before Selling
If you have decided that you want to buy your dream home before selling your old one, here are some ways you can go about it:
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Request an extended closing. If you’re confident that your existing house can be sold quickly, you can request to extend the closing date of your new home. This will give you enough time to sell your home and use your home equity to buy another house.
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Purchase your home with your savings. If you have the financial power to do so, the simplest route is to use your savings to pay for your new down payment, then sell your home once you’ve settled in. Keep in mind: you’ll need enough money to cover closing costs, inspections, and moving expenses.
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Rent out your first home: If you don’t need the sale money from your first home to make your down payment on your new one, you could always find renters for your existing house. This could help you cover the mortgage costs and delay the need to sell and buy simultaneously.
Buying a House First: Pros
- Once you sell your home, you’ll have a place to move into straight away.
- You’ll only have to move once, saving you money on storage and relocation costs.
- You’ll be less pressured to make quick and hasty buying decisions.
- You’ll have more time to find your dream home.
Buying a House First: Cons
- If you buy your home first, you may feel rushed to sell. You might feel pressured to take a lower offer than you would have otherwise.
- If you have money tied up in your old home, you may not have enough cash to make a competitive offer on your new one.
- If you decide to rent out your current home, being a landlord can be an overwhelming experience. It can be especially problematic if you decide to sell while the tenants are living in the home.
Call Today
To find out how our mortgage life insurance products can protect your new, dream home, and your loved ones, contact us today at 1-844-974-2020 or fill in our online contact form.
