Learn the benefits, risks, and factors to consider before deciding to take on a double mortgage.
A double mortgage is often temporary for traditional homeowners, but that doesnt mean it comes without risks.
These experts offer advice on how to prepare for this time to ensure success.
Credit:Stacy Goldberg
Its all about the numbers, saysMelissa Cohn, regional vice president at William Raveis Mortgage.
In these scenarios, there are a few things to keep in mind.
Individuals should consider how long it will take for a sale to occur.
What is the condition of your current home?Does it need renovation?
Does it face a construction site?
Are a lot of people doing deals in the area?
And so on, Lindsay says.
Take into account the current market for buyers as well.
The Risks
If you qualify to carry two mortgages, you arent yet out of the woods.
Pending delays or complications with your sale, you could also find that your next purchase is affected.
Buying a home can be a challenge, even if selling is easy.
Many customers dont want to move unless they find the perfect house to fit their needs, Duncan says.
Having your first home empty for prospective buyers could mean it sells faster.
The second benefit is the ability to stage the home properly.
Buying before you sell is great if your new home requires renovations.
Of course, renovation projects often incur delays, she warns.
Is it 6 months?
Is it 12 months?
The current real estate market affects carrying two mortgages based on inventory and the mortgage environment.
When it is a good time to buy, it is not necessarily a good time to sell.
They will have to contend with that.
double-check that you have the extra cash or cash flow to support the two loans.
There is help for some homeowners in these scenarios.
On the other hand, avoid being penny-wise, pound-foolish.
