If you plan to use money from the sale of your current home to finance the down payment for your next home, your real estate professional and loan officer can help with this process.
STEP 1: Before you list your home
Get your current home ready to show by getting rid of clutter and making small improvements, if necessary.
Work with a real estate professional to set a realistic asking price that will help you estimate your net proceeds from the sale.
Based on that estimate, your loan officer can work with you to estimate a possible down payment, as well as how much of a mortgage loan you may qualify for.
STEP 2: Once your house is under contract with an offer
If the net proceeds from the sale of your home are less than you estimated, you will want to speak with your loan officer to make any necessary adjustments in how much you can borrow for your new home.
Keep in mind that realtor fees, taxes and other expenses may decrease the amount you anticipate receiving from the sale of your home.
STEP 3: Coordinating your closings
The closing agent will coordinate both closings on the same day, including the transfer of funds from the sale of your current home to the purchase of your new home.
If your closings are not coordinated, your loan officer can help structure your new loan so you can carry two mortgages, if you qualify.