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How to Time Your Home Sale to Avoid Overlapping Mortgages
HomeLight
Real Estate
5 hrs ago
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To buy and sell a home without overlapping mortgages is a balancing act many sellers face. In most cases, homeowners making a move rely on strategic timing and a bit of luck. Fortunately, new solutions are available that add more certainty and peace of mind.

In this guide, we’ll provide traditional and modern strategies to help you overcome this buy-sell conundrum. We’ll review your options and show you how to minimize stress and achieve a seamless transition to your new home.

Yes, You Can Buy Before You Sell. Why Move Twice?

Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.

Buy Before You Sell

Why timing matters: Avoiding overlapping mortgages

While most people would prefer to buy a new home before selling their old one, paying two mortgages can quickly deplete savings and create anxiety. Timing your home sale correctly allows you to avoid this financial burden.

Feeling the pressure of two mortgage payments can also weaken your negotiating position, potentially forcing you to accept a lower offer on your old home or overpay for your new one.

In addition to money worries, poor timing also creates logistical nightmares, such as needing temporary housing, paying for storage, and having to make a double move. Let’s look at your options, including new solutions you may not be aware of.

Understanding your options: Sell first vs. buy first

To avoid overlapping mortgages, sellers have two traditional strategies: selling their current home first or buying a new one before selling. Each path has distinct advantages and risks related to your finances and local market conditions. Working with an experienced real estate agent is the best way to work through and compare these options.

  • Selling First: This is the most financially conservative approach. By selling your current home first, you eliminate the risk of carrying two mortgages and know exactly how much equity you have for your next down payment. The main drawback is the potential need for temporary housing if you can’t find and close on a new home quickly, leading to the cost and hassle of moving twice.
  • Buying First: This strategy offers a more convenient transition. You can search for the perfect home without pressure and move at your leisure. The significant risk is financial; you will be responsible for two mortgages until your previous home sells. This requires substantial cash reserves and meeting stringent lender requirements.

Eliminate double mortgage stress with a buy-before-you-sell program

If you’re trying to buy and sell a home in today’s uncertain market, there are new programs that can help you avoid paying two mortgages while streamlining the entire process. One of the most popular options is HomeLight’s Buy Before You Sell program. This innovative solution allows you to access the equity in your current home before it sells, enabling you to make a strong, non-contingent offer on your next home.

Here’s how HomeLight Buy Before You Sell works

This modern program gives you the flexibility to move on your timeline and then sell your previous home after you’ve moved out. You also gain peace of mind with HomeLight’s Home Sale Guarantee, a backup cash offer for your old home, providing a safety net if it doesn’t sell quickly on the open market.

Visit homelight.com/buy-before-you-sell or call 888-688-0350 to learn more.


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