Buying or Selling a Home/Buying before selling


Our situation is this:
  1) In the next few months, my family is moving between states.
  2) Our number one priority is purchasing a new home BEFORE selling our existing home.
  3) The reason for this is personal.
  4) We own our existing home out right, we don't have a mortgage on it.
  5) We have enough in the bank to cover a 20% down payment on the new home, but not enough to cover
      the full cost of the new home, before selling our existing home.
  6) Once we sell our existing home we wish to pay off the new home in full,  so we won't have a mortgage on the new home.
  7) So what is the best way of purchasing the new home before selling the existing home???

Options we have explored:

 1) Bridge loan
     - This sounds close to what we are after, but as we understand it, lots of banks or lending agencies aren't real excited about providing these.
    - Also we have read that these are mainly for people who can't afford the  down payment, but we can.

2) 30 year loan
    - We have thought about taking out a 30 year loan on the new home and then just paying it off once we sell our existing home.
   -  But we have heard there are huge penalties for paying off your loan early.

3) Purchasing new home on contingency
  - We have heard some home owners will allow you to purchase their home on the contingency of the sell of your existing home.
  - But in the area we are moving, the houses sell fast and we really doubt any home owner will honour our offer.

I am not a mortgage professional and it is best to speak with them.  I believe, you may have available to you the option to simply purchase the second home, non-contingent on your first home as it is paid off and has no bearing on this purchase.  

I don't think you need a bridge loan.  I do not believe you need to make your offer contingent on selling the other home.  UNLESS, you plan to sell it before you make the offer to use those funds to purchase.  OR your mortgage underwriter states you must sell (don't know why since it is paid off and offers no debt and is an asset of value).  

My best advice, is consult with an experience mortgage banker.

Best of luck!

Buying or Selling a Home

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CJ Brasiel, Broker Owner


I can provide information on the buying and selling of residential homes. I know the greater San Jose area well and specialize in local markets like Willow Glen, Blossom Hill, Santa Teresa, Rose Garden, Campbell, Los Gatos, Saratoga, and downtown San Jose. I provide information to help buyers and sellers make the best decision. I believe in "concierge" style real estate and it is my passion to build my business one client at a time for a life time of trusted relationships. I do not handle commercial real estate.


I have bought and sold four homes in the San Jose area. I have been in the real estate business over 10 years and a broker for the last 3 years. I am the Broker Owner of Veridian Realty Group; a boutique brokerage based in Silicon Valley.



Bachelors Business Management Broker Associate Certified Distressed Property Expert Certified Senior Real Estate Agent Certified Green Real Estate Agent Certified Real Estate Negotiator

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