Do I have to sell my home in order to buy?

ESCONDIDO – With such wonderful real estate prices and interest rates still right now, lots of homeowners want to make a transition – to a bigger home, to a retirement home or to a different neighborhood among other things. Many buyers are wondering if they have to sell their existing home in order to buy another.

One Southern California homeowner asks, “I have a $250,000 mortgage balance and I want to purchase a new home. Do I have to sell my current property to qualify for real estate loan?” That is a great question, and the answer is an interesting one.

First off, the answer is: “yes, no or maybe.” There are a few considerations to keep in mind.

The first issue to consider is whether the homeowner wants to keep the existing home. If the homeowner wants to keep the existing home, will the home be a rental? Will the new purchase be a rental?

The second issue to consider is whether the homeowner has enough money to make a down payment on another home. If they have enough savings to make a down payment on a new home, and even if they do not, it is important to speak with a mortgage lender or loan officer who can determine whether they will qualify to purchase another home. Lenders have lots of different kinds of mortgage programs at their disposal and can make recommendations based on the prospective borrower’s credit score and income level among other things.

The third issue to consider is whether the seller of the home would participate in a contingency sale. It means that the buyer identifies a new home, makes an offer subject to the sale of their current home, which needs to be listed for sale. In a fast moving market, many sellers would prefer an offer that is not contingent upon the sale and closing on the buyer’s home.

Note that there is even something called a “bridge loan.” Mortgage lenders can tell sellers about the program where they are financed for their new home while their other home is still on the market.

So, if someone is considering the purchase of another home, the best course of action would be to speak with a mortgage lender. A Realtor from Broadpoint Properties can provide them with a list of qualified mortgage lenders who provide reputable and professional service.

If they are located in San Diego or Riverside County and would like the name of a qualified mortgage lender, contact them.

This article first appeared first on Broadpoint Properties’ website, https://servingsandiegocounty.com.

Submitted by Elisabeth Hartig Lentulo, broker associate, who can be reached at (760) 532-1057, [email protected] or http://www.ehlentulo.com.