Should you buy an Orange County Home before selling your existing home?
Yes you should consider selling your home first, before you purchase another one. The 2013 Orange County Real Estate Market is very competitive and you might risk losing your next dream home because you haven’t sold your home and didn’t have money for down payment on another one. Many lenders will also take into account your debt-to-income ratio, so this may also reflect negatively on your attempts to purchase a home if you are not already in the process of selling. Before you decide to go with this option make sure you do this:
Talk With Your Lender Now
Before selling your existing home make sure that you talk with your lender and find out the home price range that you will be able to afford before and after your existing home sells.
You will also want to talk with your Orange County Realtor and find out how much money you can expect to walk away with once your home sells after your Realtor’s commission and all taxes have been paid on the sale of your existing home.
If you’ve found the perfect dream home for your next home you may have some financing options that you may be able to choose from including: wrap financing or bridge loans, which will wrap your current mortgage payment around your next mortgage payment and a home equity line of credit which will enable you to come up with the money that you need for down payment on your next home.
Move Forward With Caution
As with anything in life, purchasing a new Orange County home before selling your existing home should only be considered after making sure that you’re financially able to navigate the sometimes complicated financial waters of having two mortgages regardless if you are considering this during a hot Real Estate market or not.
The good thing about the 2013 Orange County Real Estate market is that there is still a huge demand for homes in Orange County, and once you decide to list your home for sale, it should sell quickly, especially if you hire a qualified Orange County Relator who has the experience with skills like: staging and marketing to help your home sell fast.
To speak with the team of qualified Orange County Realtors at Fred Sed & Associates contact us today by calling (949) 272-0125.