Moving then Selling Your Home Options
Are you looking to upgrade or downsize your current home by relocating? You may wonder if it is possible to move into a new home before your existing home sells or if you can even get a new home if you have not paid off your home loan (i.e., mortgage). Most importantly, it is in your best interest to express your relocation intentions to your mortgage lender or broker, as one of their specialists can help you ensure your consequential buying then selling prospects are in order.
In some cases, if you have at least 10% equity in your current home, you may be able to use that equity as a down payment toward your new home with a home equity loan. Otherwise, you may need to pay for your down payment out of pocket. Similarly, most mortgage lenders or brokers will allow you to port your current mortgage to a new property. Usually, mortgage ports occur if you have a fixed-rate mortgage. Nonetheless, if you are currently inquiring about home loans, reach out to us to learn about the criteria beyond a good credit score needed to obtain a home equity loan or mortgage port.
On the other hand, if you do not have enough equity in your current home or do not qualify for a mortgage port, especially if you intend to upgrade to a larger property, it is recommended to get a construction loan. In this case, you will need to work with a registered builder to design and itemize the cost and materials of the proposed project. A project timeline with milestones will be necessary to provide your mortgage lender or broker with the necessary information for an “as if complete” valuation. The benefits of this are that you can either update or expand on your current property or have the renovations reevaluated to increase your existing home’s property value. This may increase your buying power.
Regardless, if you are interested in a home equity loan, mortgage port, or construction loan, Mortgage House can help fund an upgrade of your existing home or transition you to a new property.