I got a heartbreaking call the other day-
Kendyl, I found the house of my dreams. Can I buy it?
My answer was “No”,
because I knew they had to sell their current home in order to buy. This is called a “contingent on sale” situation and it is a very rare seller who will accept this type of offer.
For many people, the current house must sell because the down payment is in the equity of the current home.
There is no easy way to tap into this equity without selling. There are hard money loans, which are expensive (3-4 pts and up to 11% interest) or borrowing against your stocks. Barring a rich benefactor, that is pretty much it.
My advice
is to really think about why you want to buy. Is it the whim of a really pretty house? Is a wish or a fantasy? Or, is there a solid need for a new home? Do you need different schools, more space, one level, or a safer environment?
A whim or a wish is not a reason to look at homes. Not only is it painful when you can’t buy the home of your dreams, the next home will pale in comparision.
If there is a true need-
call me. A well thought out plan will save time, money and a mountain of frustration. Life is hard. Why make it any harder?
About Kendyl