My New Blog

There are a number of options to finance that new home--even if the market is slow and listing times are long...

First, get a team of experts on your side.  Interview a few realtors and see which ones have the best strategy for selling your existing home.  Ask them how long their personal listing times are, how they plan to market your home, and what exclusive listings techniques they employ to stand out in an overcrowded market.  A good realtor will be straight forward with you about freshening up your homes interior and exterior, as well as what price you should list at and ultimately hope to get for your home.

Second, consider some form of refinancing of your existing home to put down money towards your new purchase.  Traditionally, a bridge loan, not tied to your house, but to other collateral (credit, assets, banker relations) was common to use.  But, increasingly, these have become outdated and are very expensive in terms of carrying high interest rates and fees.  A better way is to do a cash out fixed rate or home equity line refinance on your existing property.  You can often use the equity in your current home and the fact that it is your defacto primary residence to your advantage, often at little or no cost to you with much better interest rates than a bridge loan.

Finally, the key is to give your self enough time to do this!  Add to your team of experts a good accountant and financial planner to make sure...

• you are buying at the right time
• your new purchase fits your overall financial plan
• you take advantage of every tax break you can
• you really feel like you can handle the stress of moving into a new house while fixing up and selling your new one
• you have the time to get the first loan done before getting emotionally tied to a new home

Remember, if you have to rush a new home purchase, you may lose leverage in bartering a good price for your new home, not adequately presenting your old one, and possibly making mistakes with your finances that could cost you money and leaving you feeling stressed when you should be elated that you have taken advantage of a down market.

Bottom line, get to mortgage broker first, and involve the other professionals on your team before you go house shopping.  You will be glad you did.