How much you plan it, you always get stressed when the matter comes to buying and selling a house. This is because it’s not just walls; it is much more than that. It involves emotional attachment to a place we are talking about. So buying or selling a house can be a crucial decision in the life of many. Also, when both are to be done simultaneously, finances, logistics, and a whole another set of tension can take over. So a little planning about handling the situation can give you comfort in low times. So here is a list of things you should consider while working at buying and selling the house simultaneously.
Deciding on whether to buy a home first or sell a home first
This is indeed a very crucial decision to make. Many advise buying a new home first, while others say you should sell it first. So let us walk you through the things you have to face in both situations.
If you buy your new house first and then sell your already owned home, it makes moving into a new house much simpler and more accessible. It also spares you from the hassles of living in different places in case you are left with no house for a short period of time in between. However, you will have to pay the mortgages for two houses making a huge financial expense that needs a proper financial plan to go through it. Also, you need to make financial arrangements to make a down payment for your new house.
On the other hand, if you sell your old house first and then buy a new house, you will be sparing one mortgage payment by having to pay only for one house. Also, the downpayment can be made from monies received from selling the old house. Though, you may need temporary accommodation if your existing house is sold and your new home is not yet ready to stay in.
So you need to analyze what you can afford and make a decision.
Knowing what you can afford
It is an excellent plan to get your loan pre-approved so that you can decide on a cap on the price of the house you can afford at maximum. Otherwise, you may choose to go all big and later get tangled in a financial crisis.
Compromise on small matters
When you are buying and selling at the same time, stress might take over you. But keep calm and don’t fuss over small matters. If you are having a good deal, don’t let tiny things spoil the larger picture.
Appoint the same agent for both the deals
Dealing with various real estate agents for both deals can be a cumbersome handle. Coordination and management can drive you nuts. So it is advisable to have a joint agent for both the deals making the process smooth as he can help you match the timelines and help you with other matters too.
Closing the deal near to weekend or long holidays
Everyone wants the money to come faster. Now, if you choose to close the deal near to weekend or any other long holiday, it is possible that your funds are blocked for a few days and having you in stress for that period and not helping you in making a further deal for that period.
Working on mortgages and finances
Firstly, you have to decide whether you will be closing on your current mortgage and taking a new one or you will be transferring the same. If you are going to close the current mortgage, you should assure that your selling price is more than the mortgage amount left to be paid, and if that is not the case, you have an alternate financial arrangement ready to pay the same. And don’t forget about the early payment charges.
The second and much viable option is to get your existing mortgage transferred. It is called mortgage porting. You can get it done on your own or through a mortgage agent. Either way, it shall be alright if you plan it well.
There is nothing as correct or incorrect, perfect or imperfect, complete or otherwise, when it comes to buying and selling a house. It is your home, and you need to see what fits in for you and whatnot. You need to check on how much you can afford and what risk you are willing to take.
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