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Can I Buy a New Home Before I Sell My Current Home?

Photo of home with for sale sign in yard

As the weather begins to warm up and flowers begin to bloom you may be noticing something else popping up in yards around town. For-sale signs!

Spring can be an ideal time to buy and sell a new home. If you are in a hot seller’s market where homes are selling quickly, you may find yourself in a position to put an offer in on a new home before selling your current home. If you are buying new construction, you may have an advantage because you have extra time to sell your current home while your new home is being built. But what options do you have if you are buying a new home that is move-in ready?

The first thing to do is see if you can qualify to carry both mortgages at the same time. Since you will own two homes at the same time and will have two mortgage payments due each month, you need to make sure you can afford both mortgage payments. If you cannot qualify for both mortgages at the same time you may be able to rent your current home. By renting your current home, the rental income may be used to help you qualify to carry both home mortgages. Before renting your home, be sure to consult your Ameris Bank mortgage banker since additional paperwork and financial reserves may be required. Financial reserves include money from savings or investments, like a 401K, that can be used to make payments on the old home should you be unable to rent the home.

The second thing to do is figure out how much you can afford for a down payment. If you were planning on using the proceeds from the sale of your old home to buy your new home, you are not out of luck. Look for loan options that offer a first and second mortgage combination loan. These may be called piggyback loans. Piggyback loans allow you to put down as little as 5% and then borrow the remaining 95% by taking out a first mortgage for 80% and then a second mortgage for 15%. Once your home sells you can then use the proceeds to pay off the 15% second mortgage.

Buying a new home before selling your old home could come with the added advantage of time. You could have plenty of time to pack and move your belongings, which can make the process of moving less stressful. It could also allow you time to make needed improvements to your old home, so you can sell for top dollar.

For mortgage solutions to help you during the sale and purchase of your next home contact your local Ameris Bank mortgage banker or visit

By: Marlene Sheard

Marlene is the mortgage marketing representative for Ameris Bank and previous Sales and Marketing President for her local Home Builders Association. She enjoys sharing her experiences for the buying, selling, and financing of homes.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.