June 20, 2010,
P.O. asks from Antioch, TN on June 20, 2010
Buying and Selling a Home
Do you have to pay double mortgage while one is being sold and you're trying to buy another. We want to move, but we don't have the funds to be paying double mortgage. So how does that work when you're trying to sell. Do you have to sell it first before you can buy?
B.M. answers from Eugene on June 20, 2010
I would work with a realtor. You can buy a home with a contingency that you sell your home first. These are things realtors are VERY good at helping you with. I know you can save money not using a realtor, but honestly it is a hard market out there and realtors work extrememly hard for their money. Just make sure you find a realtor who listens to what you need and what you want...
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T.F. answers from Dallas on June 20, 2010
It is best to sell before you buy or YES, you are responsible for both mortages until the one for sale is sold.
When we built our first home, we started the process of building and had the house for sale. The house happened to sell in the 1st 30 days and we ended up in a small apartment and using storage until our house was completed some 5 months later.
When we built our current home, the first home we built sold before the current home was complete and we worked a deal to "rent" the first one back for a month until the new one was complete.
Kudos to thinking of this ahead of time. Many people do not plan this part of the move and get hit heavy with financial woes.
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J.G. answers from Cleveland on June 20, 2010
Usually your first payment is due aout 30 days after you buy a house, unless you find a bank that will extend the due date of the first payment. If you current house doesn't sell before the first payment is due on your new house then yes, you would have to pay for both houses.
Something else you can sometimes do is... add a clause in the purchase of the new house. The clause is that you will buy this house in 30 or 60 days if and only if your house sells before that date. Then when your house sells make sure you add in a move out date that will give you time to close on your new house & get everything out of the old one & in the new one.
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S.R. answers from San Francisco on June 20, 2010
You are responsible for both payments as everyone has already said. Unless you can qualify for both payments a lender is not going to approve you in this economy/market for the new house until the old house is sold or in a contingent free escrow. You are better off selling your house first and they find your new house to buy. You can certainly begin looking for a new house while yours is on the market so you are ready when the time comes. Good luck.
K.B. answers from Milwaukee on June 20, 2010
YES, you have to make payments on both houses if you own both. As Jenny said you have about 30 days before the first payment of the new house BUT depending where you live it may take much longer then that to sell your house. You might be able to extend the payment on the new house, now a days lenders are less likely to do that... remember that buying a house there are a lot of costs so in a span of two months you will be paying a lot of money and no guarantee your current house will sell quickly. I would budget that you will be making house payments on both for a few months plus additional cost of buying a house. With this economy unless you are moving to a different town/state for a job I would not buy a house until the current one is sold because who knows when your current house will be bought.
If you do decide to go ahead and buy the house as Jenny said add the clause that you will purchase the house only if your current house is sold in 30-60 days. You risk the chance of the other house owner saying no but it would cover you from getting into a situation that would cause further stress.
S.B. answers from Chicago on June 20, 2010
If at all possible, try and sell the first house before you go shopping for a second house. Some friends of ours bought a new house before their old one sold. That was three and a half years ago. They have been paying a double mortgage that long. Luckily they are both employed and could afford it. They are finally biting the bullet and moving back to their old house and are deeply dropping the price on the second house. One factor in their decision was the old house had a much better school district and their daughter will be starting 1st grade next year.