Let’s say that you own a home but want to move to a better home. Most people start the process by looking for the new home first… and then it hits them…. how am i going to pay for this thing?! For the sake of brevity, let’s say you don’t want to rent your current home and that you have some cash/savings for a down payment but not enough to buy the new house outright with no mortgage.
So, if you want to buy the new home FIRST, you must qualify for the new mortgage while you still have a mortgage on your current home… that’s tough for most people. Also, you run the risk of making two mortgage payments while waiting for your old house to sell… that can be a little scary because the potential for loss is almost unlimited. The advantage of buying first is that you know exactly where your moving to, when your moving, the cost of the new house and best of all, you can move right away. Read more »