Buying a new home is often one of the most exhilarating events a family experiences. But this excitement can be replaced by anxiety for buyers who are selling a home at the same time.
     Buyers who are purchasing a new home while selling their previous one try to close on both properties at the same time to ensure a smooth move. Although all parties may have the best of intentions, the properties may not close concurrently. Buyers fear the idea of paying for two mortgages at the same time, or moving the family after school starts.

What can home owners do to mitigate this problem?
     "Many borrowers do not think of buying and selling a home as one full transaction, and therefore, they tend to think of the "buy" and then they are chasing the "sell," say Margarita Garr and Lamont Smith, loan consultants for Washington Mutual based in Pasadena. "We recommend several strategies to people who are buying and selling a home at the same time. If a buyer plans properly, he or she should be able to ease out of the old home and into the new one without too much difficulty."

Selling Strategies
     Garr said that people should first find a qualified real estate agent and a mortgage expert.
     "A mortgage loan consultant from Washington Mutual will pre-approve prospective buyers. As a seller, you should negotiate only with buyers who are pre-approved to purchase your house," says Smith. "And, have the loan consultant pre-approve you. As a buyer, you want to know how much house you can afford, so you can present yourself to sellers as a qualified buyer to purchase the house you want."
    Garr also says that it's important to allow extra time in the home buying and selling schedule if you are buying and selling at the same time.
     "This advice seems obvious, but list your house for sale long before you plan on buying, if possible. When you get an offer, negotiate the escrow period to accommodate your purchasing needs," says Smith. "If that's not possible, ask to rent your previous house if you haven't closed on your new one - then you won't have to move twice."
     Sellers may be able to mitigate their concerns by accepting a lower offer that allows more flexibility on the closing date.
     "For example, if the high bidder has to sell his or her house first, you might be better off selling to a first-time homebuyer," Garr points out.

Buying Strategies
     If you are planning to buy in a competitive market, you may need to make your purchase before selling your current home. In this case, there are common and necessary contingencies that should be included in a purchase offer.
     "For example, consider adding a clause stating that your offer is contingent upon the successful sale of the property you currently own," says Smith. This contingency prevents the buyer from forfeiting their earnest money deposit, or making two mortgage payments at once.

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Lamont C. Smith

 

Margarita Garr

Pasadena Now wishes to thank Margarita Garr and Lamont Smith of Washington Mutual for assistance with this story.
"At Washington Mutual," says Smith, "we believe that there is no substitute for an informed borrower. Whether you've just found your dream home, want to check today's rates or would like to learn about the various home lending options available to you, we're ready to help. We're dedicated to making the home loan experience a positive one and minimizing the hassle and stress of buying a home."
For more information about a personalized home loan, contact Margarita Garr and Lamont Smith at (626) 577-6211 or (866) 622-6981 or e-mail them at Margarita.Garr@Wamu.net and Lamont.C.Smith@Wamu.net.

Certain restrictions and conditions apply. Programs subject to change. Washington Mutual has loan offices and accepts loan applications in: Washington Mutual Bank Inc. many states; Washington Mutual Bank, doing business as Washington Mutual Bank, FA - many states; and Washington Mutual Bank fsb CA, ID, MT, UT.  Washington Mutual is an Equal Housing Lender.