If your circumstances demand selling your present house and at the same time buying a new house, you are facing a daunting task. As a team of professionals we have zeroed down to few strategies to make the experience of buying or selling a home less stiff and more exciting for you.

1. Rent Your Present Home From The New Owner: It is exciting to find and buy a new home. If you have successfully sold your present home, the best part is that you have cash to invest in your new home. But the problem is you do not have a home to stay. You can always ask for a grace period, say about one month to stay put in your old house. Your new home owner might give you the grace time if you cover some of his expenses and if he is assured you will be buying a house soon. This can be expensive as you might have to recover some of his expenses but the advantage is you can stay in with your luggage and furniture in your house and look for a new one.
2. Move In With Your Loved Ones: If the time period is beyond a month, then you might have to consider moving in with siblings, parents or close friends. Problem can be with your furniture’s. So if you want to rent a new apartment before you buy a new house, keep in mind the cost involved. You have to shift your furniture and household stuffs twice in this case and you also end up paying the security money to rent an apartment. So if any of your loved one’s upper or ground floor is vacant, then consider that as your temporary set up. That saves you down payment, security money and maintenance fees.

Now say if the situation is vice versa, like if you have already bought a new house but still running the old housing loan, in monetary terms you are in a challenging situation. Bankers are uneasy to give out another equity loan when your previous equity hasn’t been completely covered. There are few options which you can consider under this situation.

1. Home Equity Line Credit: The best possible way to arrange down payment for your new home is via a home equity line of credit. Your rate of interest will vary somewhere between half a point or one percent point above the prime rate, depending on your credit score. The good news is your interest is tax deductable upto 100000 $ and you can pay off the loan once your house is sold. Here is where you have to be cautious. If bankers become aware that you will be selling and paying up equity loan they will be reluctant to lend out. That is because considering the low rates, if paid up fast bank does not make any money. So you have to line up buyers for your home, before the financial market is aware of your plan.
2. Bridge Loan: If you are unable to manage the equity loan, you can opt for the bridge loan which will help you to pay off the down payment atleast. The amount of the bridge loan will depend on your credit score and the amount of equity you owe on your first home. The only issue is bridge loan isn’t widely available and expensive too. But if you can manage your bridge loan from the same bank, crediting the mortgage for your new home,they might give you a cheaper loan.

A dream world is where you comfortably leave your old home to settle down in your new home. But in real world you step stones in the transition from your old one to the new one. Not only getting a second mortgage loan is tough, it is tougher to shoulder two mortgage loans. So plan out well ahead to make the transition easier for you. Expert’s advice, friend in bank, real estate agents to sell your property fast and shelter before you shift are points to take care of before taking the plunge.

Source: Goarticles.Com