Read these tips for selling your home
Are you thinking of selling your home, but still carrying a mortgage? You’re in good company. Most people who are selling their existing homes are still carrying mortgages. So if you’re thinking about moving into your dream home, but worrying about being able to successfully do your home selling, don’t give up hope – it might be difficult, but it’s doable.
HOW IS IT DONE?
If everything in life were perfect, you’d be able to sell your existing property i.e. home selling and buy a new house at the same time. Realistically, though, that doesn’t always happen, and you might end up having to carry two mortgages for a while. Or you could consider other alternatives. Give a bird’s eye view to the followings tips for selling your home.
RENT YOUR HOME
One among many tips for selling your home includes renting back your old home for a while, if you’ve bought a new one. What this means is that the new homeowners are allowing you to stay in your old home, paying them rent while you shop for a new home. Of course this isn’t going to work if the new owners want to move in immediately. And it can be expensive in relation to home selling process.
GO BACK HOME
We know, it sounds awful – but if you’re buying a new home before selling your home – the old one, you might want to consider moving back in with Mom and Dad, if they’ll have you. If they love you a lot, they won’t make you pay rent.
USE YOUR HOME EQUITY
Real tips for selling your home can bring a whole lot of difference. For instance: You can come up with a down payment on your new home by borrowing money on the equity in your existing home. Home equity loans can be inexpensive, and the interest on the loan is tax deductible. Once you are over with home selling, you just pay off the loan.
You should try to line this up, though, before you start with selling your home activities. As soon as you express your intention to sell, banks will be reluctant to give you an equity loan.
If you can’t get a home equity loan, you might consider a bridge loan. This is also called gap financing, and what it does is allow you to borrow money to make a down payment on your new home based on the equity you have in your existing home. Keep in mind that bridge loans can be expensive when selling your home is in question. These can be often as much as two percentage points over prime and also carry a lot of fees. If you get a bridge loan from the bank that holds your current mortgage, you might get a better rate for selling your home.
TAP YOUR 401 (K)
If you don’t need a whole lot of money for a down payment, or you’re looking to supplement a home equity line, you could borrow from your 401 (k). It is one of the most discerning tips for selling your home. Your employer might allow you to borrow as much as $50,000, or 50% of the vested balance, whichever is lower. Keep in mind, that if you leave your job, you might be expected to immediately return the money, or pay taxes and penalties.
You indisputably can sell a mortgaged home. But understand the benefits and the disadvantages of home selling and before you proceed have a glimpse on some intelligent tips for selling you home – precious home.