BORROWER GUIDES · ILLINOIS & MIDWEST
Can You Buy a New Home Before Selling Your Current One?
You found the right home, but yours hasn’t sold yet. Do you have to let the opportunity go? Not necessarily. Buying first may be possible, but the financing and the timing need to work together.
Start with two questions
Where will your down payment and closing costs come from? And can you comfortably cover both homes if your sale takes longer than expected?
A lender may need to count both housing payments when reviewing your application. Certain pending-sale situations can qualify for an exception, but a listing alone does not remove the existing payment. Your originator should confirm the documentation and program rules before you commit.
Compare the paths available to you
- Use available savings. This may let you purchase without waiting for sale proceeds. Leave room for moving costs, repairs, and a longer overlap.
- Explore bridge financing. A short-term loan may help connect the purchase and sale. Review its fees, payment obligations, repayment deadline, and your backup plan if the sale is delayed.
- Coordinate the transactions. Your Realtor can discuss a sale contingency or coordinated closing dates. These arrangements depend on the contracts and the other parties’ agreement.
- Sell first. Compare the expense and inconvenience of temporary housing with the cost of carrying two properties.
Plan for a delay—not just the ideal closing date
Hypothetical planning example: If the combined housing costs for both properties are $5,000 a month, a three-month overlap means $15,000 in housing costs alone. Moving, repairs, and selling expenses are additional. This illustrates cash needs, not loan qualification.
Before making an offer, gather your current mortgage statement, estimated property value, available funds, target purchase price, and expected timeline. Ask: “What happens if my home takes several extra months to sell?”
Let’s build your next-home plan. Faulkner Financial Group helps Illinois and Midwest borrowers compare financing options, with service in other states where appropriately licensed. Call or text (847) 238-9932, or meet our team.
Faulkner Financial Group LLC, powered by Barrett Financial Group LLC, NMLS #181106. Educational information only; not a rate quote, approval, or commitment to lend. Availability and eligibility depend on applicable licensing, lender guidelines, property, and borrower qualifications. All loans are subject to underwriting. Examples are hypothetical and do not describe actual clients or loan offers.