So you’ve found your dream home. Congratulations! But there is a problem: your current house is still on the market. Does this mean you have to give up your dream? In this article, we hope to help you figure out how to move if your house hasn’t sold yet in Raleigh NC.
The home selling process can be stressful. Add to that the hassle of moving and paying out of pocket for moving fees, renting a truck, closing costs on the new home, etc. This is a large project to coordinate, especially with a large family.
Depending on the type of loan you are getting, there are restrictions with getting a second mortgage with a current mortgage still in place.
How to Move if Your House Hasn’t Sold Yet in Raleigh NC
If you are getting a conventional mortgage you should not have too much trouble. If you are getting FHA financing there will be some hurdles to overcome.
If you are seeking FHA financing on a second home it is critical that you understand the FHA Guidelines ahead of time. There are restrictions on occupancy, loan to value ratio, etc.
There is an exception if a borrower is seeking new financing because of employee relocation. Keep in mind that you cannot owe more than 75% of the value of the first home. Do your homework before assuming you will qualify for an additional loan through the FHA.
Talk to your plan administrator about borrowing from your 401k.
Be sure to have a clear understanding of any tax penalties and fees before actually withdrawing money. But this can be a good source of money if you really need it. This may not be an option for everyone, but definitely, something to look into.
Try to offer the seller of the second home, the option to rent it back from you for a few months.
Depending on their situation, they might love the idea of being able to stay in their home while they shop for a new one. If you are attempting to carry two mortgages, this is a great way to alleviate the cost.
Add in a contingency in your offer allowing you to close on the new home, only after your home has sold.
This is probably the most common measure that people take. It will help protect you if you are unable to find a buyer for your current home, and at least get your earnest money back. This may be tough in the current seller’s market, but you need to protect yourself if you are unable to get financing.
Sell to a cash buyer
Getting an offer from a local home buying company, or even an iBuyer is a great way to ensure you have explored all options. You will not be obligated to sell to any of the cash buyers, and if you find the right one, you can be sure that your house will sell! You won’t have to wait for your buyer to qualify for financing!