When Buyers Are Sellers: How to Time the Purchase of Your Replacement Home
By Marla Schneider, Move with Marla
(The Marla Schneider Team)
Some potential homebuyers are sellers themselves. In a market where it often takes longer to sell a home and where it is harder to get the asking price, these buyers have a dilemma. Typically, homeowners that sell one home to buy another want to secure their replacement home first. The market makes it hard. Few people want to be straddled with two mortgages. Unfortunately new mortgage lender requirements make it even more difficult. In the past homeowners could purchase a new home before selling the old one by claiming rental income for the home that was being sold if it didn't sell. Now, most mortgage lenders will not consider rental income for unsold properties. The homebuyer can offer to purchase a new home contingent on the sale of their old one by having a clause to this effect put...
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