Moving from one home to the next can be a daunting task. Many people worry that selling their current home while searching for the next will leave them without a home at all.
Today I’d like to offer two solutions to this common problem—both of which can make buying and selling simultaneously a much more manageable process:
1. Get a bridge loan. As the name would imply, this loan product bridges the gap between the two properties. It allows you to maintain a single payment while you move from one property to the next. It’s a somewhat complex process, but can be an extremely helpful option if pursued under the guidance of an experienced Realtor.
2. Get a home equity line of credit (HELOC). If you have good equity in your property, this can be an attractive option. The main stipulation to this option, though, is that you cannot have your property listed on the market while you’re trying to obtain a HELOC. You will need to purchase your next home before selling your current property. That aside, HELOCs can be a great strategy for handling two transactions at once. Rates on HELOCs are typically better than other payment options, as well.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.