In today's sizzling real estate landscape, readiness isn't merely beneficial—it's imperative you have a game plan in place for buying your dream home.
Your next move might not be moving for the sake of moving. Perhaps you are waiting and longing for a truly special property, one that may be your forever home. I have learned over the years that those homes don't pop up every day in the MLS, it can take time to seek them out, and you will spend time patiently waiting. When they do present themselves you don't have a lot of time to waste, you have to be ready to act quickly.
Managing this delicate timing is among the most intricate buying scenarios homeowners face. Picture this: your dream property appears on the market unexpectedly. You schedule an appointment to view it with your agent. It's everything you thought it would be and then some. You have to have it, and most likely, you aren't the only one interested. Without a clear strategy in place, you're suddenly scrambling through a whirlwind house sale fire drill.
Fear not!
Avoid this anxiety by proactively formulating your home-buying game plan. Below, you'll discover the top five game-changing strategies to secure your dream property FIRST—on your terms, and your timeline, without being rushed to sell your current home prematurely.
Game Plan- Top 5 Strategies for Buying Your Dream Home BEFORE Selling Your Current One:
1. Check if You Qualify for Both Mortgages Simultaneously
Determining whether you can comfortably hold two mortgages simultaneously is your first and most important step. Partnering with a knowledgeable lender to examine your financial position thoroughly can reveal options you didn't realize existed. They'll assess your debt-to-income ratio, assets, and financial reserves to determine eligibility, empowering you to purchase your new home confidently before selling the current one. Because this process make take some time, you want to stay in communication with your lender and update your financial information with them as needed.
2. Convert Your Current Home into a Rental Property
Why rush to sell your existing home if it can generate income instead? Turning your current residence into a rental property can offset—or even fully cover—the mortgage, freeing you financially to move forward immediately. With rental demand high, especially in desirable neighborhoods, this tactic often provides an effortless transition and continuous passive income.
3. Secure a Third-Party "Guaranteed Offer" on Your Current Home
Another strategic move involves obtaining a guaranteed offer from reputable third-party buyers or investment groups. This secured offer serves as an insurance policy, providing certainty and financial clarity. Knowing precisely how much you'll receive for your existing home allows you to move forward decisively when your dream home becomes available, eliminating uncertainty and stress.
4. Recast Your Current Mortgage (The Secret Gamechanger!)
Mortgage recasting is a lesser-known, yet powerful alternative to refinancing. Instead of entirely replacing your existing loan, recasting allows you to apply a lump sum to the principal balance, significantly reducing your monthly payments without the hassles of refinancing—no credit checks, no cumbersome paperwork, just a straightforward adjustment. Think of recasting as refinancing's easier, faster, and magical cousin that streamlines the financial transition to your new home.
5. Utilize a Home Equity Line of Credit (HELOC)
HELOCs offer flexibility and immediate access to cash using the equity you've built in your current home. This strategy can provide the necessary funds for your down payment or initial costs on your dream home. HELOCs are especially attractive due to their low rates and the flexibility to borrow only what you need. With this tool, you're financially agile, enabling swift action when your ideal property surfaces.
Conclusion
Preparation is your strongest asset. Your future self will thank you!
Meet with your real estate agent early to discuss the type of home and location you are dreaming about. Along with figuring out the financial part, you will want to start working on preparing your current home. This is a team effort and your agent will help keep you on track so you are focusing your energy on the most important steps to tackle first.
By having a game plan in place with these powerful tactics for buying your dream home, you can confidently secure your dream home FIRST and sell your current property when the timing is right. Achieve your housing goals smoothly, strategically, and stress-free!
About The Author:
The above article “Game Plan Ready: Ensuring You're Prepared When Your Dream Home Hits the Market” was provided by Kelly Gibbs, Realtor with Comey & Shepherd. Kelly can be reached via email at kelly@kscincy.com or by phone at 513-290-6216.
If you’re thinking of buying or selling a home or an investment property in the Cincinnati area I would love to share my marketing knowledge and expertise to help you! Contact me today!
I service the following Greater Cincinnati, OH areas: Amberley, Anderson Township, City of Cincinnati, Clifton, Columbia Tusculum, Blue Ash, Deer Park, Hyde Park, Indian Hill, Kennedy Heights, Kenwood, Loveland, Madeira, Madisonville, Mariemont, Mason, Milford, Montgomery, Mt. Lookout, Mt. Washington, Newtown, North Avondale, Northside, Norwood, Oakley, Pleasant Ridge, Silverton, Sycamore Township, Symmes Township, Walnut Hills, and West Chester.
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