Moving into your new home can come with a lot of questions. From finding your ideal moving timeline to digging into the specifics of your budget and goals, we’re asking all that we can to form the right strategy and plan to get you into your home. Knowing the right questions to ask is a huge part of this.
For homeowners who are looking to buy their next property, a common, and necessary, point of discussion is how to buy the second home when so much of the homeowners’ equity is in their current home. “Do we have to sell our current home before we buy our next home?”
Don’t fret! The answer here is no. Our question as the lender at this stage isn’t “is it possible?” but “what is the best way to move forward?”.
Let’s talk through Contingent and Non-Contingent buying.
Defining Contingency in Mortgage.
To start simply, to be contingent means to be dependent on something. So, if you are a contingent buyer, this typically means you are dependent on the sale of your first home before you have the opportunity to buy your next. The purchase is contingent on the sale. As you might guess, this can cause a lot of issues for the buyer – the biggest being that 1st home sold + 2nd home not purchased = a gap in owning a home.
Obviously, we feel that this is not your best option. That’s where we come in!
On the flip side, a non-contingent buyer is someone whose offer to purchase a home does not depend on selling their current home first. We can help you become a non-contingent buyer!
While there are obvious benefits to this, sellers also often prefer offers with fewer contingencies because there’s less uncertainty. A non-contingent offer can provide greater confidence that the transaction will move forward smoothly.
How Is This Possible?
The straightforward answer here is that we can use specific programs like a bridge loan or HELOC that help you pull out equity in your current home for the purchase. We can also pull out creative solutions like renting or recasting, where we can walk you through specific scenarios that help you with dilemmas like contingent buying.
Every buyer’s situation is different, which is why talking with us and letting us plan with you is so important.
When you meet with us for a Strategy Consultation, we’ll take a close look at your financial picture, discuss your needs for the situation, and explore the loan options that are available to you. The right strategy can make all the difference!
Start Planning Today!
Let’s start exploring options together! It’s never too early or too late to start.