The Process: Selling Your Current Home
Have you ever wondered what happens to your current home while you’re building a new home? Do you keep it? If not, where are you supposed to live while your Wayne home is under construction? These are excellent questions, and the good news is–we have the advice you need straight from the pros to navigate the period in between selling your current home and moving into your new one.
Bob Crum (NMLS# 439974), from our preferred lender partner, Premier Bank says your mortgage professional should be there to guide you through the process.
Here are his tips for building a new home while staying in your current house.
Tips for Building a New Home While Staying In Your Current House
We hear this a lot: “Can I keep my existing house while I build a new home so I only have to move once?”
The short answer is yes…as long as you have enough income to make all the monthly payments.
The debt that needs to be counted will be any housing expense you have on your current home (principal and interest, taxes, and insurance), any installment debt greater than 10 months, and minimum payments on credit cards, along with the proposed total payment for the new loan. Here are the scenarios.
- Your gross monthly income is enough to qualify you to carry all the calculated debt payments. Obviously, the best option. No need for any changes if this is the result.
- Income is not enough to service the debt and you need to use part of the down payment funds to pay off accounts to eliminate monthly payments to qualify.
- Income is not enough to service the debt and you need to consider a bridge loan to turn your current house payment into an interest only payment to qualify.
- A combination of #2 and #3 may be needed to qualify.
If the desire is to stay in your current home while building your new house, it may take some creativity. An experienced mortgage professional is going to give you your best chance to structure the transaction. Wayne Homes has great financing resources to connect you with the right professional.
Strategies for Selling Your Home
Ashlee Freeman is a licensed real estate agent and a preferred Realtor for Wayne Homes.
She is uniquely qualified to advise our customers because she built a Wayne home herself. She recently built a Columbia Tradition with Wayne Homes – and was featured on our blog. Ashlee serves Greene, Miami, and Fayette counties in Ohio, which are areas Wayne Homes recently expanded into.
Ashlee says there are some very important key factors to consider when going through the process of selling your home.
Things like temperature of the market, timing, and your personal financial position should all be seriously considered in the early stages of the build process so you can determine which course of action is best for you when selling your existing home.
According to Ashlee, “If I could only give one piece of advice on building when you have an existing home to sell, it would be to connect with a real estate professional who can help you determine when the best time to sell would be.” Ashlee advises that this will position you to maximize your sale potential, getting the most for your existing home. “You can position yourself financially to be best prepared for the build process, closing on your new loan, and being able to handle any unforeseen expenses that may arise during the closing, building, or moving process.”
Questions to Ask Your Realtor
When meeting with a real estate professional to discuss the sale of your existing home, it’s important to ask questions like:
- When is the best time to sell in this market?
- What affordable improvements could I make to my existing home to make it sell for the best price?
- Would it be best to list our house before or after we move out?
If you decide to wait until your new home is nearly completed to sell, be sure to ask your real estate professional for an anticipated timeline, from listing to closing, so you can plan accordingly with your closings and move-in date.
Timing the Sale of Your Home
Timing can be one of the trickiest parts of this process. Everyone’s situation is different so this will be unique to you.
However, there are some things everyone should consider:
- If you sell your home before your build is complete, do you have somewhere affordable to stay in the meantime? With family, friends, or a short-term rental, RV, etc.
- Can you financially afford to stay in your existing home until your build is nearly complete? Consider your existing expenses plus the new construction loan, down payment, and more.
- If your market is hot in the early stages of your build and it would be best to sell right away, would you be able to sell with a rent-back option? Ask your real estate professional if this is an option for you.
Your real estate professional can help you gauge when would be best to list based on the current market in your area, but if you must sell in order to build, you should connect with an agent right away to discuss your best options.
Connecting with a preferred lender and real estate professional is key to creating the right strategy for your particular situation. Use our helpful resources to build your team of professionals who are there to support and guide you through this process.
Please note: All offers of credit are subject to credit approval. Premier Bank. Equal Housing Lender. Member FDIC. NMLS #424191.
Get started on your path to your new home. Contact us today!
About Wayne Homes
Wayne Homes is a custom homebuilder in Ohio, Pennsylvania, Michigan, and West Virginia (see all Model Home Centers). We offer more than 50 fully customizable floorplans and a team dedicated to providing the best experience in the home building industry. For more information, Ask Julie by Live Chat or call us at (866) 253-6807.
Disclaimer: The details of this blog are accurate as of the publish date, but are subject to change.
