I own a home, should I buy another before selling this house?

The idea of buying a new home is exciting.

Finding and wanting to buy your second home with a new mortgage can be more exciting. At First Choice, we do help people face the question of buying a second home while still living in the first, or selling first and then buying.

In a perfect world, cross-over timing would always work out. Meaning, you would have the funds to purchase the second home, move out the first and then sell the first.

But that doesn’t always happen.

The real answer

Let’s look at it this way…

If you own your home outright (no mortgage, no loans, no liens), buying a second home first makes sense. You do not know how long it could take to sell the first home. You also do not know the final sale price.

If you do not have the funds to do this, you might need to bridge that time period between selling your home and buying another. The problem is that this could take months up to a year.

In that downtime, you need to account for a rental of some type.

For help with home loans and mortgages

Contact First Choice Federal Credit Union today. We can help you with questions on refinancing, new home mortgages and moving from your first home to another.

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