Princeton Town Topics – Let’s Talk Real Estate – August 14, 2013
SHOULD I SELL BEFORE I BUY A NEW HOME?
There is no doubt about it, selling your home while buying your next one can be difficult because of all the timing and financial issues that are involved. But whether you decide to purchase your new home before or after you sell your current one really depends on your unique situation.
If you sell your home first, you have the advantage of cash in the bank to purchase your new house, and time to get pre-approved for a new loan. This approach works well if you are relocating because of a new job. However, it may require you to rent while you hunt for your new residence.
One way to give you more flexibility during the transition is to get a temporary “bridge loan”. This way you can purchase your new place and finish remodeling projects before you move in. The downside is that you will have to carry two mortgages in the interim.
Talk to your REALTOR® about which strategy best fits your needs.
