Buying a house before you sell your own is usually not a good idea. There are exceptions to every rule though. If you have significant funds (enough to cover both mortgages for a year or more), you are probably better off waiting. If you have found your dream home, though, and you are not sure you can wait, it's worthwhile to look at some of the options to accomplish your goal and the issues that come along with buying before selling.

The first thing any bank will ask when you approach them with a home you want to buy is your financial status. You maybe one of the lucky few with enough money to pay on two mortgages indefinitely, but if you are not, the bank is likely to turn you away. Things do not always go according to plan, and the bank is not one to take unnecessary risks.It is important to understand that real estate buying and selling are uncertain ventures, impossible to put definite timeframes on. Yes, you may get lucky and sell your house a week after you buy the new one or even the week before. However, it is just as likely that your much-needed sale will take months if not over a year to complete.Contingency SalesYou may have heard about the concept of the contingent home sale. In select situations, some sellers are willing to accept home sale contingency clauses. These clauses make it possible for some to buy before selling, because you do not actually buy until your home sells.A home sale contingency clause means that you make an offer on the new house and you don't actually have to move forward unless you have your sold home. When your current home sells, you are then able to move forward and everyone is happy. The problem for most sellers is that it is a very big "IF" that you will sell your home. The seller has no idea whether you will do what it takes to sell your place including pricing it properly! You may be required to put a significantly larger deposit down than you intended.

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