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How To Buy Before You Sell



Happy Thursday – I hope you are doing well. As rates are going down, we are already seeing multiple offers on properties. Based on this, it is hard to win an offer if you have a contingency to sell your home before you buy. But we have good news. For this week’s video I want to discuss 2 mortgage options that will help with this scenario.


The first option is called a Mortgage Recast. If you can qualify for both mortgages and have at least 5% to put down on the new home, then this is the best option to buy before you sell. The way this works is you buy the new home with 5% down. Once your home sells, you put the proceeds back towards your new mortgage, get rid of PMI, and re-amortize the payment. It puts you in the same new mortgage you would have been in if you had the cash from selling your home prior, and it makes your offer a lot more attractive to the seller. Once your home sells, you have to wait 2 months and pay a $500 fee in order to do the recast.


The second option is called a Bridge Loan. This is used if you can’t come up with the 5% down payment on your new home without selling. The bridge loan is a second mortgage that allows you to pull equity out of the home you are going to sell. This loan does have closing cost and you must qualify for your current mortgage, the bridge loan, and the new mortgage. It does allow you to buy before you sell if you can qualify.


Please call me to discuss if you have any questions.



Stewart Sadler

Managing Partner

Cornerstone Mortgage Group

​404-441-4765

Georgia Residential Mortgage Licensee: 21412 • Company NMLS: 147913 • Individual NMLS: 147938

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