Real Estate Question - Profit as a downpayment

[EnhancedFujita]

So last night we accepted an offer on our house, this is the first house I've sold, so this side of it is new to me. We've set the closing date on our current home as July 15. Tomorrow we're looking at and hopefully putting an offer on a house. Ideally, the new house would have a closing date before July 15th so we can move our stuff from current house to new house. After fees, we should make $15,000 on the current house that we are going to put into the new house. Does anyone know if it's possible to have the new mortgage setup to use the profit from the current house as a down payment? I've got no idea how the coordination of this will work. Obviously I'll talk with my mortgage lender and real estate agent more about this tomorrow, but my wife and I just had this dawn on us at dinner tonight and we're not sure how that works.

Thanks for any insight.

 

[chuckd4735]

So last night we accepted an offer on our house, this is the first house I've sold, so this side of it is new to me. We've set the closing date on our current home as July 15. Tomorrow we're looking at and hopefully putting an offer on a house. Ideally, the new house would have a closing date before July 15th so we can move our stuff from current house to new house. After fees, we should make $15,000 on the current house that we are going to put into the new house. Does anyone know if it's possible to have the new mortgage setup to use the profit from the current house as a down payment? I've got no idea how the coordination of this will work. Obviously I'll talk with my mortgage lender and real estate agent more about this tomorrow, but my wife and I just had this dawn on us at dinner tonight and we're not sure how that works.

Thanks for any insight.

As long as you have your current house sold before closing on your new house, yes. We went through this in August, and we closed on our old house 4 days after our new house. Luckily, my parents were able to loan us some money for four days.

 

[Cyclonesince78]

So last night we accepted an offer on our house, this is the first house I've sold, so this side of it is new to me. We've set the closing date on our current home as July 15. Tomorrow we're looking at and hopefully putting an offer on a house. Ideally, the new house would have a closing date before July 15th so we can move our stuff from current house to new house. After fees, we should make $15,000 on the current house that we are going to put into the new house. Does anyone know if it's possible to have the new mortgage setup to use the profit from the current house as a down payment? I've got no idea how the coordination of this will work. Obviously I'll talk with my mortgage lender and real estate agent more about this tomorrow, but my wife and I just had this dawn on us at dinner tonight and we're not sure how that works.

Thanks for any insight.

If you want to use the proceeds you'll need to close both houses on the same day. It's not worth doing a bridge loan either. Also if you want to close on the house you're buying before you sell your house, then you'll need to financially qualify assuming you're making payments on both loans. It's easier if you do both on the same day.

 

[Redman97]

So last night we accepted an offer on our house, this is the first house I've sold, so this side of it is new to me. We've set the closing date on our current home as July 15. Tomorrow we're looking at and hopefully putting an offer on a house. Ideally, the new house would have a closing date before July 15th so we can move our stuff from current house to new house. After fees, we should make $15,000 on the current house that we are going to put into the new house. Does anyone know if it's possible to have the new mortgage setup to use the profit from the current house as a down payment? I've got no idea how the coordination of this will work. Obviously I'll talk with my mortgage lender and real estate agent more about this tomorrow, but my wife and I just had this dawn on us at dinner tonight and we're not sure how that works.

Thanks for any insight.

There's a thing called a bridge loan for situations like this. You borrow the down payment and pay it back after closing on your sale. Your agent should know all about it.

 

[ClonesFTW]

Not many banks do bridge loans anymore, you might be able to find a small bank or credit union that is still doing them. Otherwise you can just do a same day closing with no problems.