HI

We have started the process of selling our current house and buying
another one. It is supposedly a sellers market in our area. We are
expecting to sell the house at some gain and use the gain as the
downpayment of the new house. Let us say we got a buyer and signed the
contract and they are beyond the contingency period. Lets say we have
1.5 more months to go before closing of escrow. Now if I want to buy
the new house and close on it before the older house escrow close, can
I borrow the down-payment against the money that I will receive from
the sale? Who would give such a short-term loan? My credit cards will
not cover the downpayment.

I know of other options to handle this situation like rent back etc. I
am interested on the borrowing of the down payment more as an
educational purpose.

Thanks.

-Dipu

There are many things which can go wrong with a home sale. I would not even
think about buying another house until the closing has gone through, you
have received the check, and the check has cleared the bank.

Then I would suggest renting a small apartment month to month and placing
your stuff in storage for a while if necessary. Something can hold up the
purchase of your new house, so best to be able to have a place to live
without being rushed to get out.

Otherwise you may find yourself having to pay two mortgage payments or
going through periods of extreme stress if something holds up the closing
of your existing home.


"Dipu" wrote in message
HI

We have started the process of selling our current house and buying
another one. It is supposedly a sellers market in our area. We are
expecting to sell the house at some gain and use the gain as the
downpayment of the new house. Let us say we got a buyer and signed the
contract and they are beyond the contingency period. Lets say we have
1.5 more months to go before closing of escrow. Now if I want to buy
the new house and close on it before the older house escrow close, can
I borrow the down-payment against the money that I will receive from
the sale? Who would give such a short-term loan? My credit cards will
not cover the downpayment.

I know of other options to handle this situation like rent back etc. I
am interested on the borrowing of the down payment more as an
educational purpose.

Thanks.

-Dipu

(Dipu) wrote in message . com...
HI

We have started the process of selling our current house and buying
another one. It is supposedly a sellers market in our area. We are
expecting to sell the house at some gain and use the gain as the
downpayment of the new house. Let us say we got a buyer and signed the
contract and they are beyond the contingency period. Lets say we have
1.5 more months to go before closing of escrow. Now if I want to buy
the new house and close on it before the older house escrow close, can
I borrow the down-payment against the money that I will receive from
the sale? Who would give such a short-term loan? My credit cards will
not cover the downpayment.

I know of other options to handle this situation like rent back etc. I
am interested on the borrowing of the down payment more as an
educational purpose.

Thanks.

Bankers generally want to know the source of the down payment. It
would be SOP for them to require you to document the source. In
particular, they get very nervous when the down payment is borrowed
money, and it may prevent you from getting a loan on livable terms.

You need a lender who understands your situation and has the ability
to deal with it constructively. Not all lenders do.

--
Chris Green

(Dipu) wrote in message . com...
HI

We have started the process of selling our current house and buying
another one. It is supposedly a sellers market in our area. We are
expecting to sell the house at some gain and use the gain as the
downpayment of the new house. Let us say we got a buyer and signed the
contract and they are beyond the contingency period. Lets say we have
1.5 more months to go before closing of escrow. Now if I want to buy
the new house and close on it before the older house escrow close, can
I borrow the down-payment against the money that I will receive from
the sale? Who would give such a short-term loan? My credit cards will
not cover the downpayment.

I know of other options to handle this situation like rent back etc. I
am interested on the borrowing of the down payment more as an
educational purpose.

Thanks.

You can. It's called a bridge loan. Generaly, these are pretty
expensive, and hte bank you get it from will probably want you to get
their loan which may not be the least expensive one available (they
have you over a barrell).

Don't use your credit cards. The lender will get a final credit check
ust before funding and having huge balances may impact your credit
score to the point of no loan.

Consider renting your sold house from the new owner for a month or
two. That is not atypical.

etter yet, just try to work with your buyer and get your seller (or
builder) to synchronize the closings better.

Thanks for all your comments. I understand that the safest course of
action will be to close the sale of my current house sale, get the
money in hand and then start looking for the new house and rent a
place in the meantime. But I am trying to understand what other
options are out there and what are the cost/benefit associated with
it.


Consider renting your sold house from the new owner for a month or
two. That is not atypical.


This is one possibility we are definitely going to try.

etter yet, just try to work with your buyer and get your seller (or
builder) to synchronize the closings better.

This is one thing I am very clear about. Say we have an acceptable
offer from a buyer and we make an acceptable offer to a seller. Let us
say we are successful in getting the final closing synchronised to be
within few days. Both us and the buyer have about 2 weeks to take out
our loan contingencies, that means get a loan approved. At that point
we dont have the downpayment ready. Is any lender going to give me a
loan based on the fact that downpayment will be available at closing
time from the close of the sale of the current house? Is this
completely unheard of?

Thanks.

-Dipu

(Dipu) wrote:
This is one thing I am very clear about. Say we have an acceptable
offer from a buyer and we make an acceptable offer to a seller. Let us
say we are successful in getting the final closing synchronised to be
within few days. Both us and the buyer have about 2 weeks to take out
our loan contingencies, that means get a loan approved. At that point
we dont have the downpayment ready. Is any lender going to give me a
loan based on the fact that downpayment will be available at closing
time from the close of the sale of the current house? Is this
completely unheard of?

Sure. Happens all the time -- very few people have the resources to "move up"
in the housing market without using the proceeds of the sale of their current
abode as downpayment. Without that cash in hand, 'tho, you ain't gonna close
on the loan.