The existing home changes the equation
A repeat buyer may be selling a current residence, keeping it as a rental, or buying before the current home is sold. Each path can affect qualifying income, debt obligations, reserves, occupancy, and cash available for the next purchase.
Equity does not always equal available cash
Home equity may be substantial, but the timing of a sale determines when those funds are actually available. The purchase strategy should account for when proceeds are expected and what happens if the transactions do not close on the same day.
Questions to solve early
- Will the current home be sold or retained?
- Is the next property a primary residence, second home, or investment property?
- Will sale proceeds be needed for the new down payment?
- Can both housing payments be carried if required?
- How do reserves and closing timelines affect the plan?
General educational information only. Loan programs, eligibility, guidelines, rates, costs, and availability can change and depend on the borrower, property, transaction, lender, and program requirements. This page is not a commitment to lend.