I need to buy another house, using the money I will have, upon selling
my present house, (mortgage is paid off). Is there a (chronological)
scenario, where I could go from one house, to the next, without
renting for a while? The only money I have toward another house, is
what I will get for my present house.

(xparafile) wrote in
om:

I need to buy another house, using the money I will have, upon selling
my present house, (mortgage is paid off). Is there a (chronological)
scenario, where I could go from one house, to the next, without
renting for a while? The only money I have toward another house, is
what I will get for my present house.


Why not talk to a mortgage broker or real estate agent, so you get
information that's accurate for your area and situation?

The basic idea would be to get a bridge loan, buy the new house, move in,
then sell the old house.

"xparafile" wrote...
I need to buy another house, using the money I will have, upon selling
my present house, (mortgage is paid off). Is there a (chronological)
scenario, where I could go from one house, to the next, without
renting for a while? The only money I have toward another house, is
what I will get for my present house.

If you have no current mortgage, you can either:

apply for 100% financing for a new house, then pay off as much as you can
with the proceeds of the current house

apply for a Home Equity Loan or Home Equity Line of Credit on the current
house, use that for your down payment on the new house, then pay off the HE loan
when you sell the current house.

The second option may be cleaner, since you can probably more easily find good
rates for the HE loan and a less-than-100% financing on the new house. Also,
getting a HE loan on a house you own free and clear should be a snap, and cost
little or nothing.

Just look for early payoff penalties on any loans.

David W. wrote in message
...
(xparafile) wrote in
om:

I need to buy another house, using the money I will have, upon selling
my present house, (mortgage is paid off). Is there a (chronological)
scenario, where I could go from one house, to the next, without
renting for a while? The only money I have toward another house, is
what I will get for my present house.


Why not talk to a mortgage broker or real estate agent, so you get
information that's accurate for your area and situation?

The basic idea would be to get a bridge loan, buy the new house, move in,
then sell the old house.

A bridge loan??!!!

All they need is a concurrent closing.

Have you considered the transaction costs of taking out some kind of bridge
loan? What about the financial risks and stress of trying to achieve a
concurrent closing (whereby you make an offer on another house and then try
to sell your current house before the closing on the new house, or similar
juggling)?

Points on a loan, etc. and interest might exceed the cost of renting a nice
place and storing your current home's belongings for a few months. If you're
under pressure to sell your house, you might be tempted to take a lower
offer for it. That's another potential loss. (Of course, if there are other
reasons you must move directly from one house to the other, then one has
more weighing to do. Are there other reasons? Maybe people here have
solutions for dealing with those... )

I personally would rather sell my old house, store my family's things, move
into a nice corporate-style motel or with famiily, short-term lease
apartment (penalties for ending a lease early are not that bad compared to
mortgage transaction costs), close, sock the money into a money market
account, then take a week to a few months to find my new house. If you
already know of several houses on which you'd like to make offers and when
these owners can close, all the better for planning and peace of mind.


"xparafile" wrote in message
om...
I need to buy another house, using the money I will have, upon selling
my present house, (mortgage is paid off). Is there a (chronological)
scenario, where I could go from one house, to the next, without
renting for a while? The only money I have toward another house, is
what I will get for my present house.