Are you currently looking for a new home while selling your current residence? This can be a stressful time, trying to balance these two life-changing experiences.
Take comfort that you aren’t alone. About 35% of buyers use the proceeds from the sale of their current home as the down payment to their new home.
Selling a house with a mortgage doesn’t have to be a complicated process. We’ve created this guide to help you navigate selling and buying at the same time.
How Selling a House with a Mortgage Works
A mortgage is a sum of money that you borrow to purchase a home. You sign a contract agreeing to pay the money back. Over a period of time, you make monthly payments until the entire loan and interest are paid off.
When you sell your home, this doesn’t relieve you from the loan. So as a part of the sale, the proceeds go towards paying your mortgage off.
Whatever is leftover after paying real-estate agents and other fees comes to you. So hopefully, you owe less on your mortgage than the sale price of your home.
The Traditional Way of Selling and Buying
Homeowners experience a range of emotions when buying and selling. There’s the excitement of finding a new home balanced with the sadness of saying goodbye to the old one.
Depending on the market, you could sell your current home quickly. Then you’re scrambling to find somewhere to live before you close.
On the other hand, you could find your dream home. Then you’re left rushing to sell and close on your current home so you can pay a down payment on your future home.
If everything doesn’t align perfectly, you could get stuck with nowhere to live or paying two mortgages.
Problems with This Method
With this pressure to have everything work perfectly, homeowners tend to make decisions they wouldn’t normally make. This includes settling for a home you wouldn’t have initially wanted, agreeing to pay more, or agreeing to accept less.
Your negotiating power is limited when you have this timeline looming. If the other party knows this, they can use it to their advantage.
Another problem is the added expense. Whether you rent back your original home or find a third property to rent, you’re spending money you didn’t initially plan on.
The real estate market fluctuates between being a buyer’s and a seller’s market. You need to consider the state of the market to ensure you get the timing right on your two transactions.
In a buyer’s market, it can take longer to sell your home. The buyer has the upper hand because there are so many homes on the market.
But this also means you as the buyer also have the upper hand with your purchase. You can request contingencies that allow you to back out of your new home purchase if you’re unable to sell your existing property.
In a seller’s market, you will have less freedom to make demands of the seller of your future home. In this type of market, there are plenty of buyers; they don’t need to bend over backward to your demands.
It also means that your home needs to be staged and ready to go. The advantage here is that your own home should sell quickly if you’ve priced it right.
The Process Revolutionized
Buying and selling are stressful enough; trying to get everything to align is an unnecessary addition. That’s why we created homeward. Our goal is to stop the madness and put homeowners in the driver’s seat so they have a calmer buying and selling experience.
How It Works
Our service gives you the freedom to find and buy your dream home at your leisure. Then sell your home without the pressure to close immediately.
Start by getting approved so you can look for a home that fits your budget. It’s fast and easy; requiring just minutes of your time.
Once approved, it’s time for you to start looking for your dream home. Take your time and look for the perfect home that fits your budget.
When you find the perfect home, you can use your preapproved funds from Homeward to make an all-cash offer. This makes your offer highly competitive because sellers are much more likely to accept a cash offer over a financed or contingent one.
Now that you’ve bought your new home, you can comfortably list your original home. If it doesn’t sell, we’ll buy it from you at a pre-agreed upon price. There’s no stress to meet a closing deadline or fears of your home not selling.
While selling your home, you can lease your new home from us. Then when you sell your home, you secure your mortgage and end the lease. You only pay rent for the exact days you need.
When you purchase your new home back from Homeward, all you pay is a small convenience fee for peace of mind and a smooth buying and selling process.
Benefits of Choosing a Modern Method
When you have financing help, you have complete freedom to manage the buying and selling process on your timeframe. You can still choose your mortgage lender.
This option is perfect for the homeowner that needs to sell their current home in order to finance their next home.
When you make a cash offer, you remove the financing step from the process. The seller appreciates this because it makes the entire process a little faster and smoother. This makes your offer more desirable than financed offers.
Let’s Make the Process Smoother
No matter what stage of the selling process you’re currently in, having homeward by your side will ensure a smooth transition from one home to the next. Selling a house with a mortgage used to mean trying to line everything up perfectly.
Today you can have assistance in buying your future home so you can sell your current home at your leisure and get the most for it.To simplify your home buying process get started with Homeward today.
Experience a calmer, more convenient way to buy
Take less than 10 minutes to get approved.