Reply to How to buy AND sell a house simultaneously

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]This scenario will be coming up in the next few years and can someone walk me through how this happens?

Currently own a house in a highly sought after district, will sell in a day or two irregardless of any economic situation. Am looking to move up. However, will only move when the right house appears. When that happens, I would have to sell current house to buy the next house. How does this work? I'm asking because to put an offer on the next house I would need to have a mortgage lined up for that property. But I already have an existing mortgage. Is this the scenario:

1. Talk to mortgage company and prequalified for a second mortgage that is hypothetically 10% down.
2. Right house comes up. 
3. Put offer on house, accepted, and go into escrow 
4. Sell current house 
5. Close on new house, briefly carrying two mortgages, even if just on paper.
6. Close on old house, pay off existing mortgage, transfer equity balance to new mortgage.
7. Back to just one mortgage payment

Any steps I'm missing? 
[/quote]

This is exactly what we did. We decided that it was less expensive and logistically easier to carry two mortgages than to rent because the original mortgage rate was 2.7% and the balance was low. Of course, the balance on the new mortgage is higher than we wanted until we freed up equity. We worked with an experienced mortgage broker who found us a mortgage that we could recast when the old house sold.  We got a floating rate on the new one, betting rates will go down.  One of us works in this industry on the commercial side. [/quote]

Oh dear, good luck with that. When we bought last summer everyone was telling us that in 6 months mortgages would be back down to 5%. That clearly did not happen. [/quote]

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