You may be planning to leave your old home to move into a fresh, new one. While it can be a fantastic decision, you must be worried about whether you should sell your house first or buy the new one before getting rid of the existing one. If you follow experts, they usually recommend selling the old home should be the priority. There are various arguments in this favor. Let’s delve into them to get an idea of why you can trust them.
Mortgage issue
Most people imagine a scenario where the timing of buying and selling houses sync so well that they don’t have to worry about anything. But everything cannot go hunky-dory. Sometimes, you also need to take the likelihood of worst conditions into account. Suppose you bought a new house without selling the old one. Suddenly, market situations change, and you end up facing financial troubles. At the same time, your old home starts demanding significant repairs due to a pipe burst. Whether this or something else happens, you will have to bear the cost of both the properties. And if you don’t have enough savings, the option of selling the house first can seem more appropriate.
It can look more relevant if you need to take a loan to buy a new property. When you go to a lender, the company can check your debt and income ratio to understand whether you are eligible for a loan. Since it is about two properties, they will assess if you can manage two mortgages simultaneously. In that case, your debt amount has to be at least 36% less than your total income per month. If you don’t satisfy such criteria, it can be challenging to secure a new home loan.
Sluggish market
Another situation where it can make sense to sell your old home is the current property market condition. If the demand in your area is not decent enough, you will want to get rid of your property before buying a new one. There can be two reasons behind such a decision. First, selling may take time, due to which you may have to deal with two mortgages if you buy one already. Then, if you don’t get a reasonable price for your old home, the new home that you already bought with so much love can feel like a burden.
If you don’t want to get into any unfavorable situation, it is better to sell your old home for a cash offer. You can approach hard money lenders for this. These people buy and upgrade properties after checking all the details and make an offer. If you find it satisfying, you can get that amount in and get done with the old home. This process tends to be faster and simpler. For details, you can go through https://webuyhousesbuffalonow.com/hard-money-lenders once.
These are only examples of why you need to sell your old house first before investing in a new one. Some people want to relocate to a better locality with all the types of amenities nearby. To avail these, they may have to loosen their purse string, which can be financially challenging. However, if you save cash from the house you sold, you may not have to think twice before making this decision.
So, what are you waiting for now? You can sell your house to a real estate investment firm to get some quick cash for your new dream home.
Leave a Reply