First-time homebuyers are fortunate to have a wide range of information and resources available to help them navigate through the home buying process.
However, when these new homeowners find themselves ready to upgrade into a better home, there are not quite as many resources to help them tackle the unique aspects of purchasing a second home.
Second-time homebuyers are forced to contend with a new complication: in addition to purchasing their new home, they will also have to do something with their current residence. This added layer of difficulty can create some serious issues that require expert timing, or at the very least a strategic plan.
When you are trying to purchase a second home and simultaneously selling or renting out your first home, there are a number of complications that can arise.
Here are the four most likely scenarios and some pitfalls to watch out for:
The Easiest Way
The easiest way to ensure that both transactions are completed without putting your family’s financial wellbeing at risk is to first take care of selling your current home. After that transaction has been handled, you can then rent a house or apartment until you are able to find a new home to purchase.
The downside here is that you would be forcing yourself to move twice, but you would completely avoid any risk of having to carry two mortgages. You will however have to find a reasonable rental for whatever amount of time is necessary while you look for your new home.