Should I Sell My House or Buy the Next One First?

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A lot of my clients want to know how to buy. Should you sell your current home first and then make an offer? Or should you buy and pay two mortgages until you sell your current home?

There's a few different things you should consider to find out what's best for your situation. If you want to buy your new home before you sell, you will have to pay two mortgages. Are you willing and able? Even if you are, lenders do have some requirements.

Lenders look at debt to income ratio, debt to equity ratio and cash flow. Some lenders also require 20% equity in both the homes combined. If you buy a home for $100,000 and your current home is $100,000, you will need $40,000 in equity.

You should also consider whether you are making a logical or emotional decision. Do you need this home or did you just fall in love with it during the walk-through?

If you have questions about whether to buy or sell first and which is best for your situation, please give me a call. We can set up a time to talk!