Selling a house...

**peanut** · 12-27-2006, 06:56 PM

Okay, we've been out of the real estate market 12 years now. We own a house free and clear. We're looking at buying down to a smaller home with a self-contained basement suite. We do not have money saved up for a down payment. We're wanting to buy a new house first, fix it to our specs (there's always something wrong with them), then move in and sell this one. How do we work this? Do we have to get some sort of bridge financing from the bank? What's it called? What do we ask for? What are the options here? Anyone know?

TIA

Jean

**PrairieRose** · 12-27-2006, 10:30 PM

The only thing I can think of is to prequalify for the approx. amount of the loan you'll be needing and then borrow on a signature loan and finance it for say 5 years (that way the pmts. shouldn't hurt you too bad) for the down payment when you need it. Or you could do a home equity line of credit, at your present home. Anyone else have any creative ideas?

**chatterweb** · 12-28-2006, 02:05 AM

A Heloc or Home Equity Line of Credit would work if you know about how much equity you have. Try Zillow dot com for a zestimate.
You could also email any local realtor for a free CMA to find out the value of your current home.
Or, see if any homes similar to yours have sold in the past 6 months.
First you need to determine how much equity is in your home, and how much you need, if you go that route.
But, since you own your home free and clear, you may be able to get a new loan for the home you want...
I would consult a realtor, they usually have a lender they use anyways. And , you will need the realtor to sell and the lender to fund.
Unless you sell as a fisbo, and get a hard money loan for the new home...

**peanut** · 12-28-2006, 02:48 PM

The thing is, if we sell the house, we won't need any loan at all. It's worth at least $140,000, and that would probably be the equity in it (unless market value and equity are different to the bank - are they?). We're hoping to get situated in a home worth about $125,000.

Actually, we may not need a realtor to sell this home. It's in a very desirable location. It would probably go by word of mouth. In fact, I've started to spread the word around already. We'll see what happens. We may just place an ad in the classifieds this spring, when we're ready.

**mikibracken** · 01-12-2007, 05:48 PM

You can get a loan on your new home before you sell your other home. Since you owe nothing on it the only amount that will be calculated into your debt ratio is the monthly amount for taxes and ins. You however, do not need a Realtor to avoid getting a "hard money" loan. If you have no credit issues I would recommend contacting your "Local Bank", a credit union, and a mortgage broker. Compare rates and costs to see where you get your best deals. They all have thier pros and cons, do your own homework.

**peanut** · 01-13-2007, 06:55 PM

Thanks everyone. We called a realtor to come look at the house Monday and talk over ideas. Will let you know what happens. We're not totally sold on selling the house. She's going to have to do some fancy footwork. What has become apparent in the 3 weeks the kids have lived here, is that I will need a separate studio from the house, but still on the property. As well as a heated 2 car garage, and a separate rental suite in the basement. Nothing like being specific! We'll see what she can do.