Those who are looking to purchase or build a new house may wonder about the best time to put their current home on the market. While Delaware families can be eager to sell their house for financial and personal reasons, those who do so before a new home is ready could find themselves with more work. Mortgage rules can also play into the decision about how to order real estate transactions.
One of the reasons families may choose to buy a new house before selling their old residence is that it can be easier for everyone involved. Vacating a home and living somewhere temporarily before finalizing the sale on a new home can be a big burden, as it requires people to move twice. However, mortgage rules can make it difficult for some Delaware families to order their real estate transactions in this way.
The reason for this is that in a mortgage, a borrower can only occupy one house. This means either the new or old house must be categorized as an investment property, and the loans attached to an investment are higher risk than those tied to a permanent residence. Additionally, people may have trouble affording or qualifying for a loan without selling their current residence first.
Mortgage rules and Delaware state law affect all real estate transactions in the state. It is a good idea to have serious conversations with a lender, trusted real estate professionals and a lawyer focused on real estate law before making major decisions. This includes the choice of whether to sell or buy first.
Source: vcstar.com, “Buying a new house before selling your old one has its challenges,” Jack Guttentag, Feb. 2, 2018