can I use my pending home sale for new down payment

Hey Lisa, Yes, you can go into contract on new property pending the sale of your home. I'm Local in Summit, NJ and would love to walk you thru the process. E-mail me: carlos@keypointmtg.com or call me @ 908-516-2190 Ext. 301

Hi LisaCarlos is correct. You can use equity from a pending sale and get the ball rolling sooner than later. You will need to get a preliminary HUD from your attorney to show what you would walk away with from the sale and use it for the new purchase. I'm also a local lender in westfield and would be happy to guide you through the process as well. 908-451-4517

You can certainly start the process using the anticipated proceeds from the sale, but most lenders will not allow you to close on the new home until the current one sells.

Yes

You can get started with a new home loan, but you would have to close on your current house so you can use the proceeds for your down payment and for the payment to not count against you. You may also look into some local banks who may offer a bridge loan using the equity in your current property as collateral for the new house without having to have it sold prior to closing on your new home. Very hard to find these days, but it is still available in some areas, although it will cost you more in fees and rate most likely.

You can make the offer on a new home, have the offer excepted, and even go through underwriting. But for YOUR actual closing, you'll generally have to wait until the home sells to use that the money from the sale for down payment. Of course the actual sale, and your actual purchase can occur on the same day. All your great loan options including FHA, VA, and standard conventional loans like Fannie Mae and Freddie Mac do NOT allow for any asset based creative options in lieu of your actual cash down payment. BUT, you CAN, if you qualify for all of this, take out a home equity loan on your current property, and use that as down payment for the new home. Most people can't make it swing, because now you need to qualify for the old loan, the new home equity loan, and the new home loan at the same time - simply making too expensive for most people. Talk to a mortgage broker in your area for options. For homes in MN, WI, and SD, visit me at www.JoeMetzler.com