Allow me to explain… let’s say you currently own a home that you’d like to sell and then buy another. What do you do first?
But the best way to do things really depends on you and your tolerance for risk. There are a couple things to consider.
In this particular scenario, you would buy your new house first. Then once you have it under contract and your new mortgage set up, you can concentrate on selling your current home. Then you won’t be under the gun to accept an offer that would be less than you would take in a different situation.
That is what a HELOC is for – A home equity line of credit is a good idea in this situation because cost to set one up are low and require less underwriting.
Again, just like the age-old question of the chicken vs. the egg, buy or sell first depends on your unique situation.
The ideal situation would be to have a accepted offer on the house you are selling and also on the house your are buying with both closing on the same day.
But I am sure you know its not that easy. However a great real estate agent and lender can help you coordinate this if possible.