The Timing Challenge
The core dilemma: you need to sell your current home to afford the next one, but you do not want to be homeless in between. Options include selling first and negotiating a leaseback, buying first with a bridge loan, or making a contingent offer. Each has trade-offs based on your financial position and the market conditions.
Bridge Financing
A bridge loan allows you to borrow against your current home's equity to fund the down payment on the new one before your existing home sells. This gives you the ability to make a non-contingent offer, but it means carrying two mortgages temporarily. Bridge loans typically have higher interest rates and shorter terms.
Pricing Strategy for Your Current Home
When you need to sell on a timeline, pricing correctly from day one is critical. Overpricing delays the sale and can leave you stuck between two mortgages. A pre-listing inspection and competitive CMA help you avoid surprises.
