Reply to How to buy a house without a contingency of selling our current home

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Sell your house first.  If it's in a desirable area, you can insist on a rent back period.  That, and a 45 day closing period, will give you more than enough time to find a new house.  Worst case scenario, you live in temporary housing for a short time.

I am unclear why this obvious solution eludes you.  [/quote]

The reason this "obvious" solution eludes me is because we have been looking for months and have not yet found the right house. We will only move for the right house and gambling that it will come along during a short rent back period is very risky. [/quote]

We were also looking for the right house and were only going to move if we found it since we were basically content where we were - just wanted more space.  So we got our house totally ready to sell.  Then, as soon as we found a place, we put in a contract with no contingencies and a 45 day close and then turned around and got ours on the market a few days later with a 30 day close.  Got the cash from our sale two days before we closed on the new house.  Title company held onto the money and just transferred it over.

This worked for us b/c we could also afford the new house without selling the old one (don't even ask me how...our income was only 180k and the new house was 640 and the old house still had 300k left on the mortgage).  IF our sale had fallen through, we would have been able to swing the new purchase still but would have had to do less down and have PMI.  If this had happened, we would have just done a one time payment when the house did sell and have the lender recast the loan.  I made sure that was an option.

You really just need to talk to a lender and find out how much they'd qualify you for if you did NOT sell your current home.  If they say they'll qualify you for the amount you're looking for, then do what we did - get a contract, put old house on the market within a wek, and have a backup plan to get you through a 1-2 month overlap if ofr some reason your house doesn't sell as fast as you thought it would.[/quote]

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