Should I purchase a new home in Bend before selling my current home?
This is a question that many Bend Oregon homeowners have had lately during the competitive 2013 Bend Oregon Real Estate market and it’s not a hard question to ask because, the average home buyer doesn’t want to risk out on losing the ability to purchase their next dream home because they didn’t have money to make a down payment on it.
Before making the decision to purchase a new home before selling your current home, there are several things to consider including the following:
Talk With Your Bank or Lender Immediately
You should always make the effort to speak with your lender first before planning to purchase another home because, you want to make sure that you are not only are financially able to purchase another home while paying an existing mortgage, you also want to make sure that you have the buying power to complete the transaction since your lender will tell you exactly how much home you can afford before and after your home sells.
Talk With Your Realtor
Another important thing that you must do besides speaking to your lender before purchasing a new home is to speak with your Bend Oregon Realtor because, you want to make sure that you know exactly how much money you can walk away with after your Realtors commission has been paid and also after any other taxes on the home are paid once the sale goes through.
Last of all, but most important, another question to ask is how are you going to come up with the money to purchase another home before selling your existing one? If you have good credit and equity in your home, there are a variety of options available to you that you can consider including: bridge loans, wrap financing, tapping your 401(k) or asking a relative for a loan that you can use as a down payment on your next home.
Each of these financing options should be followed through with caution only after you speak with your lender and or financial manager to make sure that you are fully aware of how you will be affected should you not close the sale on your current home right away and be faced with the prospect of having to pay two mortgages.
To learn more about purchasing another Bend Oregon home before selling your existing home, contact me today by calling area code 541-383-1426.