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beachvibes4 t1_j6lh6vr wrote

Reply to comment by newwriter365 in I'm considering selling my home, renting for a year, then buying my second home in order to avoid some of the stress of trying to sell and buy at the same time. Is this a bad idea? by youAtExample

But having the time to find the right house for the right price is crucial

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iwishiwereonabeach t1_j6llfok wrote

Love the user name! You are absolutely correct. We rented for a few months between the sale of my house and the purchase of our new house together. It was worth it because what I could afford and he could afford was significantly different. We had to find something he could afford on his own if something happened to me or my job as the lower earner but also not be too far of a commute for me every day. It was a beast to do but we managed somehow.

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PriorSecurity9784 t1_j6mgk7g wrote

Why not wait until you find it to sell?

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beachvibes4 t1_j6mug79 wrote

Someone will buy it before you have the money from your sold home.

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PriorSecurity9784 t1_j6n9plr wrote

Not as much risk of that these days as last year.

And when that risk is highest, it’s also the highest risk of having the market pass you by while you’re renting.

When I bought/sold at the same time, I was able to get a local bank to do a bridge loan. Rates were a little higher, but it was repaid with the sale of my other house 30-45 days later, so a couple points of interest didn’t make that much of a difference.

And we knew we might be putting our old house on the market, so it was ready to list and show as soon as we put the new one under contract.

By the time we closed on the new one, we already had a contract (but not closed) on the old one, so bank was able to see that it was pretty low risk.

But I guess local bankers who know their borrowers are less common these days

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