Agent

Buy now, sell later? Think contingency

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Most homeowners who sell one home to buy another want to secure the replacement home before they sell. But many of these buy-first sellers may find it difficult, if not impossible, to do this due to recent tightening of mortgage lender requirements. Before the credit crunch, sellers who bought a new home before selling the old one were allowed to claim rental income for the home they were selling if it didn't sell. This boosted the income needed to qualify for owning two properties. Today, most lenders no longer consider rental income for the unsold property. This makes it harder for many to qualify to buy before selling. There are a few options available for homeowners who want to move to a home that better suits their needs but who can't afford to buy first. One is to buy contingent upon the sale of their current home. In some markets -- typically those still overloaded with unsold inventory -- this approach might work. Most sellers who are willing to entertain an offer mad...