The real estate market is competitive, and you might find yourself frustrated if you’re trying to buy a house before you sell yours. Timelines during both transactions are important. Let’s take a closer look at some information that can help.

πŸ’Ό 401(k) Account Loan

Most employers allow loans against their employees’ 401(K) Retirement Accounts to buy a house. This is a low-risk and low-cost way to finance your home purchase before you sell your current house.

If you change employers, you’ll need to repay this loan in a short period of time. Otherwise, this is considered a withdrawal and will be subject to penalties and taxes.

🏦 Unsecured Bridge Loans

A Bridge Loan provides funds for a short period of time until another source is available. In the context of the home loan market, a bridge loan allows you to close on the sale of the new property before you close the sale on the old house.

A bridge loan is not available unless there is a binding contract of sale on the current house. The rate might be higher than the other options, but the interest payment will not amount to much since the loan’s covered period is short.
couple looking to buy a house - looking at laptop and holding papers

πŸ“± Contact RL Real Estate Group

The ins and outs of buying a house while selling a property can be tricky, but we are here to help. Give us a call today at πŸ“± 605-212-8431. You can even text us!

πŸ’° Home Equity Line of Credit

Getting an unsecured bridge loan is not possible without a binding contract of sale. In this case, you can get a home equity line of credit (HELOC). A HELOC allows you to get the amount you need to close the sale on the new house.

This is only possible if your house is not yet listed for sale. If lenders visit a property not listed for sale, there is a cancellation charge. You might end up paying for closing costs.

πŸ’΅ Secured Bridge Loan

The mortgage lender that finances the purchase of your new property may be willing to give a secured bridge loan on your current house as a marketing incentive. The disadvantage of this option is that the loan rate may be higher.

πŸ€” How to Buy a House Before You Sell Yours

When choosing the best route for you, it is best that you consult an expert to give you a clearer and deeper understanding of each of these options. This way, you are guaranteed the best possible results. Get assistance from a reputable real estate company like RL Real Estate Group. Reach Regan Laughlin and her team at 605-212-8431.

Buy a house concept with happy couple holding a model house and keys
How to Buy a House Before You Sell Yours
Article Name
How to Buy a House Before You Sell Yours
The timeline is important when you're trying to buy a house before you sell yours in Sioux Falls. Here are some tips to help you succeed.
Publisher Name
RL Real Estate Group
Publisher Logo
View All Buying a Home Posts