Tyler's Art Show 2008
Do I have to sell my present home first?
Whether or not you have to sell your present home first to
a new home depends on how much equity you have in your present
home and how much mortgage debt you qualify for.
If you have enough equity in your present home, you may be eligible
to use that equity to obtain a "Swing loan" for the
down payment on
the next home. Your home would have to be listed with a Realtor
in order for you to do this (usually a lender requirement).
You use the equity loan for the down payment and in some instances,
you can defer the payment (including the interest) until your present
home sells. This all depends on the mortgage company.
You may incur some additional closing cost as you will have to close
on the "Swing Loan" as well as the new mortgage and this may require
title work, etc. on the swing loan as well as the new home mortgage.
In some instances, you can just get an equity loan for the down payment
on the new home. But, you will have to make monthly payments on this
loan until your home sells. And, again, you have to qualify for
loan payment, the mortgage payment on your present home and the mortgage
payment on the new home. This could limit your buying power.
It is best to discuss this with a Realtor who will help you get the right