Stephanie8904: WE ARE SO CLOSE TO FINISHING THIS VERY PROCESS (can you tell I am excited?!), so can chime in!! This is the order of which we did things, and can attest that we were truly lucky in the process…because we had not plans to buy or sell, until we stumbled across our ‘dream’ home!
Once we found the home we could not walk away from, which was honestly done out of boredom of me doing a search for anything new on the market, we had to get pre-approved before making an offer. I utitlized the realtor’s mortgage guy for the pre-approval, and we received it without the contigency that we sold our home (meaning, we could carry both mortgages if need be, although it would be awful). We had saved enough to put 20% down on our new home without needing to sell our current home, which meant that IF we did not sell our home, we would be in a tight situation as long as ours remained on the market. We also asked for, and was approved a 90-day close on the new home, so we could out current home on the market, and hopefully sold…
And so the underwriting process began on our new home, and the negotiations….inspections, etc…
THANKFULLY, our home sold in 3.5 weeks (right before Thanksgiving), and the buyer wanted our home by February 1st, which took us a few days past the close of our new home. We were very lucky in that regard. I think the biggest thing we did not account for was what our home inspection would render, and what we would need to repair to sell it, which of course was negotiated, but still was another $1000.00 we had to shell out (while buying a new home :()
As it turns out, however, we close on our new home 1/15, get the keys 1/20, close on our current home 1/27, and turn over the keys on 1/31. Where our savings will be completely depleted, we get *some* of it back when we sell our home, because we sold for quite a bit more than what we owe.
This process is not for the faint of heart, and has actually caused a ton of stress on each of us, and in our marriage. I was panicked when our house did not immediately sell, and then was panicked when it did, and could not fathom how we will be out in 10 days time (we also have an infant on top of all of this!!). However, as I sit here venting, I cannot say how lucky we are to have had the process work out in such an ideal way, because carrying 2 mortgages would have been incredibly hard too.
I now cannot imagine selling our home without having a home to move into like others have had to do in our circle, so I am not sure there is an ‘ideal’ way to buy then sell, or sell then buy!!! GOOD LUCK!