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Rates are flat today. Today’s rates with no lender fees are 3.625% APR on a 30 year, 2.875% APR on a 15 year and 2.750% APR on a 10 year. (click here for details)

So the $20 million dollar question of the day is: Do you buy first or sell first?

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?

Check it out in today’s video:

First off, I’d recommend to avoid giving up your existing home just yet. Having to look for a place to live and store your stuff while you wait on your new house can be a nightmare.
You may also want to avoid the commitment on a new house using the equity in your existing house because you may then find that you are unable to sell your house. That can be an even worse headache.
But the best way to do things really depends on you and your tolerance for risk. There are a couple things to consider.
Do you have enough income and cash? If you have enough cash to carry the burden of two mortgages and enough cash to meet the cash required to buy that new house WITHOUT using any of the equity you have in the old one, then you, my friend, have the perfect setup.

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.

Now if you have enough income to qualify for two houses, but not enough cash on hand, you may need to cash out some of the equity in your current home.
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.
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgageā€¦forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.

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