Buying a New House when You Already Have a Mortgage
You probably didn’t realize it back then, but your first home-buying experience was likely one of the easiest ones you’ll have in your life. You may have been outbid a few times or had difficulty learning how to navigate the negotiation process, but – more than likely – you didn’t have to try to deal with another mortgage while you were busy becoming a brand new homeowner.
If you’re now ready to transition to a new home, the reality of simultaneous buying and selling will soon hit you. It’s a tight rope walk that can easily become expensive or overwhelming. It would be great if you could buy your new home, settle in, and sell your existing home when the chaos dies down, but for most people, that’s far from a realistic picture. Now, you have to figure out how to buy and sell without winding up with two mortgages at the same time.
Just remember, people do this all the time, and you can do it, too. Keep these pointers in mind when buying a new house when you already have a mortgage:
Know the Market
You should always do your homework before you make a big investment, but it’s particularly important to understand the market when you’re going to be both a buyer and a seller. Knowing if the market is weighted toward buyers or sellers will likely affect your strategy.
Be mindful of the fact that market preferences tend to be regional. In other words, if you’re planning to purchase a home somewhere other than your current city, it’s possible to have the market stacked for or against you on both sides of the real estate table. Researching your current marketing, as well as that of the city to which you plan to move, can help save you from some preventable frustration as the process gets underway.
Understand Your Strategy
You can’t rely on timing. What happens if your buyer’s loan falls through? What if the house you’re bidding on doesn’t pass inspections, or the seller pulls the house off the market? You have to have a backup plan, but there’s a lot to consider before you solidify your strategy.
When it comes to simultaneous buying and selling, there’s one conundrum that’s as old as the chicken and the egg: Should you buy first or sell first? There are pros and cons to each:
Sell First
Pros:
- It’s easier to get a mortgage.
- You’ll have more cash to put towards your down payment.
- You may have to put your stuff in a storage facility, which will add to the cost of your move.
Cons:
- You’ll have to find a temporary place to live while you wait for your own purchase to finalize.
Buy First
Pros:
- Moving is much easier.
- You don’t have to worry about temporary housing or storage units.
Cons:
- Your debt-to-credit ratio will be higher, which can make it more difficult to obtain a mortgage loan.
- You’ll be juggling two mortgages until your house is sold.
One way to minimize the stress of selling and buying simultaneously is to move into a brand new home. Because you won’t be waiting on current occupants to figure out their own plans, you can get moving right away. The Residences at The Ritz-Carlton, Dove Mountain offer luxury living in an array of highly customizable, brand new builds. Take a look at our floor plans, and contact us if we can be of any assistance.
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About Our Dove Mountain Community
The Ritz-Carlton Residences, Dove Mountain is a community of luxury custom homes where every detail has been carefully considered, from thoughtful site planning to magnificent home designs that enhance the beautiful desert views and foster a lifestyle that fuses the indoors and outdoors.
The custom homesites give owners the opportunity to design the luxury home of their dreams. However, if you prefer to move in more quickly, there are customizable floor plans, which can be finished to meet your specific wants and needs.
At The Ritz-Carlton Residences, Dove Mountain, you may select from eight custom home floor plans to suit every need and lifestyle, but these suggestions may only be a starting point. Collectively, your wishes combined with the expertise of the competent and creative design staff, allow your residence to emerge as your very own distinctive home, reflecting your family and its lifestyle. Luxury custom homes in The Residences range from just under 1,700 to nearly 5,500 square-feet and are available in two neighborhoods.
Finding out whether or not it is just right for you begins with a call: 877-451-7205.
