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"relaxing" <ywildner21@optonline.net> writes:
> I am relocating to Fl. Need some advice. What do I do first. Buy the new
> house first or sell the old one first. Can I use my unsold house as
> collateral towards the new house. Am I going the wrong way about it?
Depends on your income and creditworthiness.
Also depends on how well you want the old home to show.
In general, you're far better off selling the first home and having it
shown furnished, only having one house payment, and not being under
duress to sell. It puts you in a much stronger position. After you
have that money, go buy your next home. Most relo packages (if you
have one) have an allowance for temporary living. If not, rent an
apartment for 6 months or something.
You can purchase in the new city if your debt to income ratio and
credit score make a lender comfortable enough. You coudl take out a
home equity line of credit against your old home to come up with down
payment funds for your new home. Then, when your old home sells,
the proceeds pay off that line of credit. You can structure the new
home loan to have a first mortgage of a size that has monthly payments
that fit your long-term budget, and in the mean time, you can be
bleeding each month, making payments out of the home equity line of
the old house if you need to. I did this for a few months in a move.
It was emotionally nerve racking mind you, but it all worked out
finally.
Basically, unless you have a very compelling reason to buy before you
sell, I would advise against it. It's rather stressful and risky unless
your old home is sure to sell in a decent amount of time.
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Todd H.
http://www.toddh.net/
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Re: Selling & Buying at the same time
