Buying a brand new residence whereas nonetheless proudly owning your present one can really feel overwhelming—however it doesn’t have to be. Whether you’re relocating, upgrading, or just discovered your dream residence earlier than anticipated, there are strategic methods to make it occur with out having to promote first.
At American Pacific Mortgage, we provide a variety of Bridge to Buy options designed to provide you with extra flexibility, stronger shopping for energy, and larger peace of thoughts. Let’s discover the choices that may aid you make your property buy—with out the stress.
Buy Before You Sell Programs: Move with Confidence
Buy Before You Sell applications eradicate one of many greatest roadblocks within the shopping for course of: the necessity to promote your present residence earlier than buying the subsequent one.
These revolutionary options permit you to entry up to 70% of your present residence’s fairness to use as a down fee—with no month-to-month funds required on the bridge mortgage in lots of instances.
That means:
– No juggling sale and buy dates
– No home-sale contingency in your provide
– A stronger, cleaner provide in aggressive markets
Whether you’re upsizing, relocating, or simply prepared for a change, Buy Before You Sell options aid you transfer ahead confidently and strategically.
Bridge Loans: Tap Into Equity Before You Sell
A bridge mortgage is a short-term mortgage possibility that allows you to faucet into the fairness in your present residence and use these funds towards the acquisition of a brand new one. This could be a game-changer in aggressive markets, permitting you to current a non-contingent provide and keep away from the strain of timing each transactions completely.
At APM, we provide bridge mortgage applications that may assist in completely different eventualities:
– Close with confidence: Ideal if you have already got a purchaser beneath contract. This possibility might permit you to exclude your present mortgage out of your debt-to-income ratio, serving to you qualify extra simply in your new residence.
– Debt-inclusive possibility: Designed for householders who’ve listed their property however don’t but have a purchaser. This program takes into consideration all housing debt to aid you transfer ahead responsibly.
Both choices present entry to up to $400,000 in funds, serving to you keep versatile, scale back stress, and transfer by yourself timeline—all with out the necessity for a home-sale contingency.
HELOC: Home Equity on Demand
A house fairness line of credit score (HELOC) permits you to borrow in opposition to the fairness in your present residence and use these funds for the down fee or closing prices in your subsequent residence. Because it’s a revolving credit score line, you’ll be able to borrow what you want, if you want it—and repay on a versatile schedule. This is greatest for these contemplating preserving their present residence as a rental.
Key advantages embody:
– Interest-only funds in the course of the draw interval
– Lower charges than many different types of credit score
– Flexibility to entry funds early in your shopping for journey
A HELOC is good if you happen to’re planning forward and wish quick access to funds earlier than your present house is bought.
Rent Out Your Current Home: Turn It into an Asset
If you’re not prepared to let go of your current residence, take into account changing it right into a rental property. This method permits you to generate revenue that may assist offset the price of your new mortgage—and in some instances, the rental revenue might aid you qualify. In the case of preserving your property as a rental, you may take into account tapping the fairness with a HELOC, Second Mortgage or perhaps a cash-out refi. Be certain to speak to your mortgage advisor and run the numbers to guarantee it really works in your monetary scenario and targets.
Why it is sensible:
– Create long-term funding revenue
– Offset prices of proudly owning two properties
– Hold on to a property you imagine will recognize
Make certain to plan for the obligations of being a landlord, together with tenant screening, lease administration, and upkeep.
Make a Contingent Offer: A Safe, Traditional Route
A contingent provide permits you to buy a brand new residence provided that your present residence sells first. While it’s a safer monetary transfer, particularly if you happen to’re on a tighter finances, it could be much less aggressive in scorching markets the place sellers prioritize non-contingent gives.
This technique works greatest in balanced or slower markets the place sellers are extra open to versatile phrases.
Departing Residence Guidelines: Increase Your Buying Power
At APM, we provide departing residence pointers that will permit you to qualify for a brand new mortgage even earlier than your present residence sells. If your property is listed and also you meet sure fairness and credit score rating necessities, we might have the opportunity to exclude your present mortgage out of your debt-to-income ratio.
This lesser-known resolution can considerably increase your shopping for energy and create extra flexibility when planning your transfer.
Seller PreLock: Make Your Listing Stand Out
Higher rates of interest can deter patrons—however the APM Seller PreLock program flips the script. This program permits you, the vendor, to lock in an rate of interest in your future purchaser, making your itemizing extra engaging in a aggressive market.
Benefits embody:
– Stand out with a built-in price benefit
– Attract extra certified patrons
– Sell your property sooner
– Refundable PreLock price if you finance your subsequent residence with APM
This technique helps easy your transition from one residence to the subsequent—with out having to scale back your sale value.
Which Bridge to Buy Strategy Is Right for You?
Choosing the suitable technique begins with understanding your individual monetary profile and homeownership targets. Every scenario is exclusive, and what works for one purchaser won’t be the most effective match for an additional. Here’s a deeper have a look at the important thing elements to take into account:
How a lot fairness you’ve gotten: Your obtainable fairness performs a central function in figuring out which Bridge to Buy resolution you qualify for. If you’ve owned your property for some time—or bought in a market that’s appreciated considerably, you might have extra choices obtainable. The extra fairness you’ve gotten, the extra shopping for energy you’ll be able to unlock in your subsequent transfer.
Your consolation with short-term monetary overlap: Owning two properties concurrently, even for a brief interval, can really feel daunting. That’s why it’s essential to select an answer that aligns together with your threat tolerance. Some patrons desire the construction and predictability of a hard and fast fee via a house fairness mortgage. Others recognize the flexibleness of a HELOC or the strategic timing of a bridge mortgage.
Local market situations: Are properties in your space flying off the market—or lingering for weeks? In fast-paced markets, applications that permit you to purchase earlier than promoting (like a bridge mortgage or Buy Before You Sell program) aid you keep away from lacking out in your subsequent residence. In slower markets, contingent gives or cash-out refinances could also be extra acceptable to sellers.
Monthly money movement: Consider how your present revenue and money owed issue into your determination. APM gives options that may exclude your present mortgage out of your debt-to-income ratio beneath sure pointers, providing you with extra room to qualify in your subsequent residence.
Timing and urgency: If your subsequent transfer is time-sensitive—say, due to a job relocation or college schedule—you might have considered trying to discover choices that permit you to act quick with out ready in your present residence to promote. Bridge loans, HELOCs, and residential fairness loans are all designed to provide you with that flexibility.
Buying and promoting on the identical time doesn’t have to be a balancing act. With the suitable Bridge to Buy resolution, you’ll be able to transfer by yourself phrases—with confidence and readability.
Talk to an APM Loan Advisor in the present day and let’s begin constructing the bridge to your subsequent residence: Connect right here.
