Ready for More Space? How to Make Your Next Move Count

Are you considering a bigger home but unsure how to pull it off? Whether you are buying first, selling first, or exploring creative financing, here is your complete game plan for leveling up without the headaches.

1.     Sell First, Then Buy

• How It Works: Sell your current home, then find a temporary living arrangement while you search for the right upgrade.
• Pros: This approach frees up your finances, making you a stronger buyer and eliminating the need to carry two mortgages.
• Cons: Temporary housing can be inconvenient, but it can help reduce financial pressure during the transition.

2.     Buy First, Then Sell

• How It Works: Purchase your next home first, then sell your current one afterward. Financing options like bridge loans or a home equity line of credit (HELOC) can help cover down payments while waiting for your home to sell.
• Pros: No need for temporary housing, and you can move at your own pace.
• Cons: It is a higher financial commitment, and you might carry two mortgages briefly.

3.     Explore Financing Options

• Bridge Loans: Short-term loans that cover the down payment for your new home until your current one sells.
• HELOC: Use equity from your current home to fund the next purchase. This is ideal if your property is paid down, and you have built up substantial equity.
• Pros: Offers financial flexibility to buy first if you do not want to sell immediately.

4.      Leaseback Agreements

• How It Works: Sell your home and lease it back temporarily, giving you time to buy and move into your next home.
• Pros: You receive sale proceeds, which can go toward your new purchase, and do not have to move twice.
• Cons: Not all buyers may agree to a leaseback, and it can slightly limit the buyer pool.