3 Ways to Buy and Sell a Home at the Same Time

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Sell first, then buy

This scenario is the most common because it’s the most financially feasible. You start this process by selling your home, then getting pre-approved for your new home so you know how much you can afford. Your lender’s affordability analysis will first look at your available cash for down payment, then determine your monthly obligations.

Buy without selling first

This scenario has become common in recent years as tight inventory in many markets has made it harder for people to find a new home while they sell their existing home.

To buy without selling first, you need enough cash for a down payment on a new home, and you’ll need to assess with your lender whether you can afford two sets of housing payments.

Buy and convert existing home to a rental

This approach is for people who want to keep their current property as a long-term investment. Depending on the lender and your profile, you might be able to count rental income on the current property to qualify for the new loan.