If you want to sell your current property and purchase your next dream home, you might be wondering whether the closing dates need to be on the same day.
You might even be worried that you’ll lose a property if the closing dates overlap, or you’ll be put out on the street if the dates are far apart!
For the most part, these concerns are unfounded. Thousands of properties change hands every day and usually everything works out just fine. In fact, it’s amazing how often closing dates actually do match!
But, what happens if the closing date of the home you want to buy is days or weeks earlier than the closing date of your own property?
If you are fortunate enough to qualify for both mortgage payments, then your best bet is to close and move into the new home while the sale of your existing home is pending. Some lenders anticipate this situation and offer something called “Bridge Financing.” It is a special loan that allows you to purchase the property with the earlier closing date. When your current property closes, the bridge financing ends and your new mortgage – if you need one – begins on the new home.
Alternatively, if the home you want has a later closing date, we will work together to explore options, such as a short-term rental.
Right now, it’s a seller’s market with very low inventory levels, while it maybe easy to sell your existing home, it might be harder to find the next home. I believe a lot of home owners are sitting on the sidelines waiting for inventory to improve before putting their home on the market. If you are able to secure temporary housing between homes, now would be a great time to sell. It’s projected that we have a strong spring and summer buying season and that inventory levels will improve by the end of the year. Read more in the 2021 Housing Forecast.
Reach out if you would like to discuss your situation.