You’ve finally found your dream home, but there’s a problem: your current home hasn’t sold yet.
This can be a source of stress and worry, especially if you are ready to take the plunge and want to avoid complications. This article will discuss various possible solutions to help you deal with this difficult situation.
1. Can the bank advance the money?
One of the first options that comes to mind is to ask the bank to advance the amount needed to purchase the new home while waiting for the current home to sell. Unfortunately, in the current context, this option does not exist in most situations. However, an obvious alternative called transfer credit could be interesting and suitable for many. Emmanuel Elkouby, certified mortgage broker and manager of the AH Groupe Inc. agency, explains that if you already have a mortgage on your current property, you can take out another one for the new house without it appearing in your debt ratios. This would be possible by proving that the potential buyer of your current property has received unconditional mortgage confirmation from their side. It’s important to note that this option depends on the lender and is typically valid for 90 to 120 days.
2. If your income is high enough, you will qualify for both houses
Another option is to qualify for both homes if your income allows. If you have a high income and can afford the mortgage payments on both properties, some lenders may be willing to give you a loan for the new home, taking into account the financial burden of your current property. However, before going down this route, be sure to carefully consider your financial standing as it can pose significant risk.
3. Use equity for another building
If you own other property, such as a holiday home or investment property, you might consider using the equity in that property to finance the purchase of your new home. This strategy allows you to borrow against the equity in your other property, which can give you more flexibility in the buying process.
4. As a last resort, private lenders should be avoided
As a last resort, you might consider using a private lender. However, this option should be approached with caution as private lenders usually have higher interest rates and stricter terms and conditions. It is best to explore other options before approaching a private lender unless you are forced to move to another city for work reasons. In this case, it may be worth considering temporary accommodation in your new city rather than going through a private lender.
Diploma
Finding your dream home and selling a property at the same time can be stressful, but don’t get discouraged. Experienced real estate professionals are available to provide you with advice and support during this process. Be open to alternative financing options and flexible arrangements with sellers. This way you can explore the different options to realize your dream of living in a house that suits you and in which you feel comfortable.
Advice:
1. Real estate development services: Hire a home staging agency to help you present your home attractively and make it easier to sell.
2. Temporary rental of your house: If you can afford it, consider renting out your home temporarily while you wait for more favorable market conditions. However, be aware of the implications and potential difficulties of renting when selling.
3. Open communication: Maintain open communication with the home seller. He may be more understanding if you need a deadline or specific arrangements.