Finding the perfect home for you and your family can fill you with excitement – which can oftentimes be the catalyst for people rushing into high-dollar financial commitments before actually thinking about the consequences. So, does it make more sense to sell your current home before making a commitment on the next?
In many instances, the answer is a resounding yes – and there are several good reasons for this. For instance, first, if you presently have a mortgage – and you will also require a mortgage in order to purchase the new home – then you don’t likely want to be stuck carrying two mortgages.
Take, for instance, purchasing one home before you have sold your present one. On the one hand, rushing into making an offer on a potentially “perfect” new abode can better assure you that nobody else will buy it out from under you. But on the other hand, there can also be some substantial financial drawbacks.
In this case, you could essentially be responsible for making a house payment on two properties, as well as paying for two sets of utilities, and two home owner’s insurance policies. This, in turn, could quickly drain your savings.
In some instances, it may not even be possible to qualify for a new mortgage while you are still active on another one. That’s because your debt-to-income ratio has to be able to support both mortgages. So, if you don’t think that you’ll be able to swing it, then selling your present abode may have to be your first order of business.
If you’ve got questions or concerns regarding the home buying or selling process, we can help. We’ve assisted clients in all walks of life, and through both up and down markets. So, contact us when you’re ready to move forward. We will provide you with a no obligation home valuation so that you have a viable starting price.