Should You Sell Your Home Before Buying Another

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With the virus spreading around the US, many families have decided to relocate due to Covid-19. There are many reasons why Americans migrate. Some families have gone to work, some are frustrated with the way local governments are handling the pandemic, and others don’t think their state is being run properly. Regardless of your reason for moving, this blog will tell you how to sell your current home and how to buy a second home. The home buying and mortgage process can be very stressful. Because there are so many moving parts. Gustan Cho Associates has helped many families move and is ready to help you and your family! With coordination and careful planning, there’s no reason buying or selling a home can be stressful.

Should You Sell Your Home Before Buying Another

Should You Sell Your Home Before Buying Another

If you have a home to sell, it can add to an already stressful process. Preparing to market a contract is stressful enough. Stress levels increase during contraction. To get the most money when selling your home, it’s important to decorate it as beautifully as possible.

Should I Sell My Home Before Buying A New One?

Once the deal is done, you need to take care of your seller’s finances and actually close, and most importantly, close on time. During this time, you need to pack all your belongings and be ready to go. This part of the process is very time consuming and stressful. If you think that the financing from the buyer may decrease, it will have a negative effect on your home purchase. In today’s crazy real estate market, many transactions are getting backup offers just to be safe. You may want to check with your real estate agent if this is an option.

Let’s say you enter into a contract to sell your current home. You can close on your current home and buy your next home on the same day. Doing so will require good planning and a highly skilled mortgage team. If your current property buyer is still conflicted about the sale of the property, this will have an even greater impact.

Unless you have a lot of money to rely on, you need to stay on top of every part throughout the process. Many states, including Illinois, use real estate attorneys to make sure all parties are on the same page. But this is not the case in most states. Your real estate agent can only do so much. Some of the responsibility will be yours.

When it comes to closing your mortgage, you’ll need to work directly with your mortgage team to make sure everything is submitted on time. The sooner you get your documents to the mortgage team, the sooner you can close. If you are definitely closing, you are relying on the buyer’s funds. If you are moving across the country, this will add more stress to the process. Contact Mike Gracz at 630-659-7644 or email mgracz@ for day of purchase and sale details.

What Happens To Your Mortgage When You Sell Your Home?

Some families may decide to keep their current home and buy a new home. Depending on your debt-to-income ratio, this may be possible. Even if you have no home ownership history, you can use up to 75% of fair market rent to cover your mortgage payments if you have an equity position of 25% (or more).

Fair market rent is calculated based on the rent paid in your area as determined by a licensed appraiser. They will use Fannie Mae Form 1007 (or another agency’s required form). Keep in mind that this qualified income can only be used to cover current mortgage payments, including taxes, insurance, and homeowner association fees. 75% of your fair market rent can only cover your mortgage payments and will not count as additional income to qualify for the next property. This is important. Please contact our team for further clarification.

Does selling a house affect income tax? Gustan Cho Associates recommends contacting your tax professional for specifics. We are not qualified tax professionals and cannot advise you on tax returns. But it’s important to consult with your accountant about the taxes you’ll pay on the sale of real estate. This amount may limit your available cash.

Should You Sell Your Home Before Buying Another

Some people are in the financial position to buy a home first and then sell their current home. This can greatly reduce stress and running costs. Having a place to store your belongings during the move really helps the process. Many agents have told us that many buyers are using this process in the age of COVID-19. They believe this could mean more people are working from home and need more space than ever before. So they keep their current office setup while they look for a new home. Before buying your next home, keep in mind that retaining ownership of your current home can dramatically change your mortgage eligibility. It is important to contact Gustan Cho Associates to deal with unique situations.

When Is The Right Time To Sell Your House

This is the question we tend to ask when contacting most individuals and families. Can I pay off both mortgages? Do you offer bridging loans? What property do I need to buy my next home? Can I rent out my current apartment? As a general rule of thumb, if you’re tight for cash, you’ll need to sell your home first. If you have a high income and a lot of assets, you can move out of your current home or sell your old home.

With all the information provided in this blog, you can see why choosing a team of mortgage professionals is so important. The team at Gustan Cho Associates is available seven days a week and ready to work for you. We will answer any questions you may have about buying or selling real estate. If we don’t know the answer, we’ll refer you to a licensed professional. We work with many real estate agents and real estate lawyers. We look forward to helping you find the right home for you and your family. Contact Mike Gracz at Gustan Cho Associates at 630-659-7644 (or email mgracz@). Please send us a message for a quick response.

Michael Gracz NMLS 1160212 is a mortgage specialist at Gustan Cho Associates Mike can help borrowers with less-than-perfect credit and higher debt-to-income ratios. Because the Gustan Cho Associates team is a non-duplicated government and FHA loan originator, Mike can build incomplete borrower files and help them qualify for a home loan in a short amount of time. It’s not a matter of if you’ll qualify for a mortgage with Mike, but when. Mike Gracz can be reached at 630-659-7644 or by email at mgracz@

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Questions To Ask Before Buying Or Selling A House

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Share to X (Twitter) Share to Facebook Share to Pinterest Share to LinkedIn Share this post to Reddit… Very few homes become “forever” homes. Generally, most people who get a flat move to another place after a certain period of time.

Should You Sell Your Home Before Buying Another

According to the National Association of Realtors, 10 years is the average length of time a homeowner lives in a home. But that begs the question: How many hours should you have at least before you leave? How long should you consider selling your home?

When Is The Best Time To Sell Your House?

The answer depends on several factors. A new job opportunity, a growing family situation, an unexpected divorce, or another major life event may be compelling reasons to sell and move your home. But selling soon after buying can be expensive. If not at the right time, you can usually lose money instead of making a profit on the sale.

Ask real estate attorney Mel Black how soon you want to move, and he will tell you, “Buying a home is not an easy decision.

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