One of the biggest concerns many homeowners face when upgrading to a new home is: “How can I buy a new property without selling my current one first?”
This is a common dilemma, but the good news is that there are several practical solutions available.
Bridge Loans
Here’s how it works:
- The lender considers the equity in your current home and uses it to help fund the down payment for the new purchase.
- You can get approved for the full purchase price of the new property.
- Once your old home is sold, you use the proceeds to pay down the bridge loan or refinance it into a traditional mortgage.
Note: Bridge loans usually come with higher interest rates, so they work best when you are confident your current home will sell soon.
Buy With Cash or Savings (If Available)
If you already have enough savings for a down payment, or access to other liquid assets, some lenders may approve your new loan as long as:
- Your current home is listed for sale, and
- You can qualify for the new mortgage based on your income and assets.
This way, you can move into your new home without being forced to rush the sale of your existing property.
Which Option Is Right for You?
Not every solution fits every situation. That’s why it’s important to discuss your options with a professional who understands the local market and loan products available.
Call Me — I’m Here to Help: (415) 225-7920
If you’re in this situation and not sure where to begin, I’d love to help you explore your options and guide you through the process.
Let’s talk and see what’s possible for you.
Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983
NMLS #205637
BRE #00874630