Reply to Stuck - House will sell, but no houses to buy!

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It seems impossible to purchase a starter home with a sales contingency.  The houses are under contract within days.[/quote]

Confused, if it's your starter home why would you need a sales contingency?

Either way, prepare your house to sell, keep looking for a house and[b] if you land one, than you put your place on the market and try and get the timing to work out.[/b] Normal people do this all the time.[/quote]

But how can this work in hot areas if homes in such areas sell in a matter of days?[/quote]

ummm... because houses are selling days?  why wouldn't it work... just did this last spring... got an offer accepted on a new place after losing out on a couple, went ahead and closed on the new house... then put ours on the market (the only reason we waited to put ours on the market was that we had given a 2 month rent back on the new house)... got a contract in 2 days on our current house and negotiated a closing 1 week after we got access to the new house... done...[/quote]

Not always so simple, Donald Tump.  There may not be enough income to simultaneously carry two mortgages, regardless of being able to scrape together a down payment for the second home.

Sell the first home in this good market.  Move into a rental.  Find the ideal home while not being either panicked to buy or to sell.  Sure, it involves an extra move, but it will enable you to have $ in the bank and make a strong offer and quick closing on a new home.  If you rent a desirable place, you could even have more flexibility by subleasing if you find the new home during the term.

But what if you need the funds from the current house to buy the new house (and to qualify for the loan for the new house)?[/quote]

snarky answer? than maybe you need to look at your financials a little closer and (a) aren't really ready to buy a new house or (b) buying something too expensive...

realistic answer? make your own bridge loan, assuming you have decent credit, banks will still qualify you for way more loan than you should take, so if you have equity in your existing house use a heloc, raid your emergency fund, and hell you can even do a 401k loan and than pay all of those back once your existing house sells...[/quote]

Not always so simple Donald Tump.  There may not be enough income to simultaneously carry two mortgages, regardless of being able to scrape together a down payment for the second home.   Also, without all the equity, they may not be able to qualify for the best terms on the new loan.

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