Should You Sell Your Home Before Buying Your Next One?

If you're thinking about moving, one of the biggest questions you'll face is whether to sell your current home before buying your next one—or buy first and sell later.

The answer isn't the same for everyone. It depends on your finances, how much equity you have in your current home, and what's happening in your local real estate market.

Planning ahead is important because coordinating two home transactions isn't always as simple as it sounds. There can be unexpected delays between selling one home and closing on another, so understanding your options before you begin can help reduce stress along the way.

Buying Before Selling

Buying your next home before selling your current one can make the transition easier. You may be able to move directly into your new home and avoid the uncertainty of finding a home after your current one sells.

Some potential advantages include:

• Moving directly into your new home without temporary housing.
• Having more time to prepare and market your current home.
• Avoiding the pressure of finding a new home quickly after selling.

Keep in mind that qualifying for a new mortgage before selling your current home may require you to demonstrate that you can comfortably manage both mortgage payments, depending on your financial situation.

Selling Before Buying

Selling first offers greater financial certainty because you'll know exactly how much equity you have available for your next purchase.

Benefits of selling first may include:

• A clearer understanding of your down payment.
• Less risk of carrying two mortgage payments at once.
• A more predictable budget while shopping for your next home.

The biggest challenge is timing. Depending on the market, you may need temporary housing or storage if you don't find your next home before closing on your current one.

Financing Options

Some homeowners choose to buy before selling by using financing that allows them to access the equity they've built in their current home.

Depending on your situation, options such as a Home Equity Line of Credit (HELOC) or a bridge loan may help make the transition between homes. Qualification requirements vary, and not every option is the right fit for every borrower.

A BankFirst Mortgage lender can help you understand which solutions may be available based on your goals and financial situation.

The Bottom Line

There's no one-size-fits-all answer when deciding whether to sell before buying or buy before selling.

The best approach depends on your available equity, monthly budget, financing options, and the current housing market.

Before making your move, talk with a BankFirst Mortgage lender. Taking time to review your options now can help make your next move more confident—and a lot less stressful.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.