How Can You Buy a New Home Before Selling Your Current One?

By Tarah Walker

Tarah Walker is a licensed real estate broker, mortgage loan originator, and property manager in Orange County - proudly serving her clients since 2013. Tarah's dedication to excellence shines through in every transaction. As a committed real estate advisor, her primary goal is to facilitate the sale of your property with efficiency, professionalism, and a personal touch. Whether refining your listing strategy or negotiating favorable terms, Tarah is fully dedicated to your success. If you are seeking a real estate professional who combines expertise with personalized attention, Tarah Walker is here to help make your real estate journey a smooth and successful one.

If you plan to move into a new home, you might wonder, “Can I buy my next home before selling my current one?” The answer is yes. I’ve seen plenty of Orange County homeowners successfully handle this tricky situation. Let’s dive into three smart strategies to make this work for you.

1. Sale contingency. You can add a clause in your offer saying that buying your new home depends on selling your current one. This helps you avoid juggling two mortgages at once. However, remember that offers without contingencies are often more appealing in today’s market. So, while this option can work, it might not always be the best choice.

2. Bridge loan. This financing lets you access your current home’s equity, helping you make a stronger offer on your new place. It’s a great way to get the funds you need without waiting for your home to sell. If you choose to sell first, you can rent your old home back quickly while you complete your new purchase. This gives you the flexibility to move without the stress of two mortgages.

3. Tap your equity. Some companies can help you access up to 80% of your home’s equity upfront. This means you can buy your new home without a contingency. Once you’ve moved in and sold your old home, you’ll receive the remainder of your equity. You can even recast your new loan to lower your monthly payments.

Are you thinking about buying before you sell? I’m here to help. With the right strategy, you can make your next move with confidence. If you have any questions or want to discuss your options, call or message me at (562) 569-2222 or walkerteamoc@gmail.com. Let’s create a plan that works for you.