1 STEP vs. 2 STEP:
1 STEP: We wait to list your home until you find the NEXT home. This gives you the greatest flexibility. Two things need to coincide for this option: Lender approves you with carrying both mortgages at the same time (being non-contingent), and you are comfortable not knowing the exact amount you will receive from the sale of the current home.
2 STEP: This is for clients that prefer to know the EXACT amount the home will sell for on the market. The challenge could be that we are successful in selling your current home before you can either find or move into the next home. This is also the path clients take when they can not be approved for the next home without selling the current home.
*** We are happy to proceed either route for you. If you can qualify for either step most homeowners prefer Step 1 so they can dictate the timing and process.
Let me know which you prefer...
Additional Information on STEP 1:
If doing STEP 1 it is important to determine the best path forward with down payment, especially if the money is coming from equity within the current home.
Top options for down payment prior to selling your current home:
HELOC: (cheapest solution - it will have a cap of typically 75-85% of Loan to Value - LTV) This has to be set up PRIOR to your home going on the market for sale.
BRIDGE: Lenders give this option and it typically costs 1% of the NEW loan amount so if purchasing a more expensive home it may not be ideal.
NG PRIVATE: We have the option to loan you money through a private fund. It is a 10% charge to borrow it. So if you needed $50,000 for the down payment prior to selling the home it would cost $5,000 for a total of $55,000 payoff.
** We recommend reviewing all options, happy to discuss them in more detail.