If you already own your home and you have plans to build your next home. The sale of your current home must be well prepared like dallas homes for sale. From taking out the loan to selling the property, take the time to follow a few steps.
Build Your House By Already Owning It
If you have planned to build your house and you have to sell your current home. It can be difficult to know which end to take this project. If you sell before your house is built, you will then encounter several difficulties, starting with the fact of having to find temporary. Transitional housing, knowing that a construction lasts approximately between 8 and 18 months.
In addition, if you sell at a price lower than what you estimated. It will weaken your loan application file and the financing of your new home. It is therefore generally easier and more reasonable to sell while the house is being built.
This will make it possible to limit housing problems and therefore limit additional expenses. And your loan application will be facilitated.
Think About The Purchase-Resale Mortgage
Also called bridge loan, it is a loan offered by the bank and which is aimed precisely at owners wishing. To buy or build a new home when they have not yet sold their current home.
With this type of loan, the bank advances you the funds necessary for the financing of your new house under construction . While waiting for the old dwelling to be sold. This bridge loan is generally granted for a period of 12 to 24 months, which corresponds to the period. During which you can both build the house and sell the current dwelling.
Once the sale of this home is effective, you can then repay the purchase-resale loan. Note that with this type of loan, the bank does not grant you the amount equal to that of the home you are selling.
It provides a margin of safety because the property can be sold at a price lower. Than that estimated. In addition, the refund can be made in two different ways:
Either you repay the interest and the insurance premium each month.
Either you only repay the insurance premium each month, and when the loan matures. You repay the interest and the capital borrowed.
The Matched Mortgage To Complete The Bridge Loan
It may happen that the amount of the bridge loan is sufficient to finance the construction of the new house ,. And therefore this loan alone is sufficient.
But generally, the price of the construction is higher than the sale price of the current housing, and this therefore requires the subscription of another additional loan, which will complete the financing of the construction project. This credit is called the matched credit . This means that you have taken out two separate loans:
The bridge loan estimated between 60 and 80% of the price of housing for sale.
And the matched, complementary loan, which corresponds to the difference between the bridge loan and the price of the construction of the new house.
Building And Selling Your House: When Is The Right Time?
Finally, it is essential to choose the right time to sell. If you get a bridge loan, you might as well wait until you have a reliable and timely move-in date. Otherwise, be aware that a construction project lasts more or less a year, but this can extend between 8 and 18 months.
This period includes the design of the project, the filing of the building permit, the period for recourse by third parties, and the construction work as such. The right time to sell is usually when construction begins, which gives sellers less than a year to complete the sale.
The ideal is to make the sale of the accommodation coincide with the move into the new house, but this is not always possible, so it is common to experience a lag of a few months.
But to avoid having to live in a hotel or return to your parents, you can schedule a delay in the signing of the deed of sale at the notary, or even ask the buyer to accept a deferred enjoyment of the well .