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Pulling Off a Simultaneous Transaction

When buying and selling at the same time, how do you avoid having two mortgage payments?

The key is to make sure you hire a structured agent who will help you follow through on all of the steps you need to take. Many of these scenarios boil down to contingency clauses. This way, if your current home doesn’t sell, you can still get out of your purchase without having those multiple mortgage payments come back to haunt you. 

You can also recast a loan, although only certain mortgage companies will allow you to do this. Recasting a loan means restructuring the payment when you make an additional down payment to the loan. For example, if you could purchase a home today and set up a mortgage payment, you can take any built-up equity from that home once you’re ready to sell it and apply it to your new mortgage for your new house. This lump sum readjusts your new mortgage payment for the next 30 years. 

The point to remember is that you can adjust your payment to where you want it to be and still buy a house while selling your current home first. Just remember to use your equity correctly. 

Again, though, your agent has to have the right tools for the sale and purchase. The right documents must be used so that your interests are protected and no one can undermine you if you try to back out of a purchase. 

The seller must also know what’s going on in the transaction, so make sure your agent is transparent with theirs. If there’s no transparency with the contingency form or the communication between agents, a hiccup later could jeopardize both transactions. 

The last thing you want is to close on your new home, sell your old home, and have nowhere to put your stuff.


Both agents need to be on the same team
so everyone knows when everything’s happening and you can pull off a simultaneous close, meaning you can buy and sell the same day and the money moves between the title company instead of being transferred from one bank account to the next. This makes a world of difference when trying to move into a house, especially in states where possession happens upon funding. 

Also, make sure your furniture and belongings are in order because it usually takes one or two days to move furniture during a simultaneous closing. This is where you can use a residential temporary lease. This can be a buyer’s or seller’s residential temporary lease. You can stay in your original home for three days and pack or move into your new home three days before closing. The last thing you want is to close on your new home, sell your old home, and have nowhere to put your stuff. 

If you’d like to know more about buying and selling at the same time or have any other questions, don’t hesitate to call or email me. Additionally, stay tuned for more valuable content from this video blog coming up soon. 

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Caitie Neal

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