Looking to buy a new home before selling your current one? While it might seem daunting, accessing your home equity to facilitate this move is very doable. Here are four ways to make it happen:
First up, consider a home equity line of credit, or HELOC. Essentially, it’s a second mortgage allowing you to tap into your home’s value without selling. Just be prepared — it takes a bit longer to secure than a traditional mortgage, so get it sorted before house hunting. With a HELOC, you can typically borrow up to 85% of your home’s equity, giving you ample funds to secure your new dream home. Once you’ve moved in, you can take your time selling your old place and repay the HELOC with the proceeds.
Another option is a bridge loan. This short-term solution uses your equity as collateral, offering up to 80% of both your old and new home’s value. Keep in mind, they often come with higher interest rates and are best suited for those with excellent credit and ample equity. However, if you’re in a time crunch and need quick access to funds for your new purchase, a bridge loan can be a lifeline. Just be sure to work closely with your real estate agent to expedite the selling process of your old home.
Next, is the third-party buying service route. Companies like Homelight or Knock can advance your funds based on your home’s equity, enabling them to purchase your new home with an all-cash offer. Once you sell your old place, you can buy back your new home from them. It’s a convenient option, but do note there are fees involved. However, the advantage of making an all-cash offer can make your bid more competitive, especially in a hot market.
And last but definitely not least is the Immediate Sale option through Amanda Howard Sotheby’s International Realty. With this option, we’ll assess your home and provide you with an “as is” cash offer within just one business day! Imagine being at the closing table in 10-14 days — no repairs, no showings, no hassle! Simply give us a call at 256.799.9000 or request your offer online and we’ll conduct a complimentary, in-person assessment of your home and present you with a competitive cash offer right away. Plus, you get to choose your desired closing date and move according to your schedule. Rest assured, we’ll evaluate your home “as is” and deliver an offer within as little as 24 hours. In most cases, we can wrap up the entire process in less than 2 weeks.
If you have any questions, feel free to reach out to the Amanda Howard Sotheby’s International Realty team at 256.799.9000.
