Diving into your options for using your equity to buy a new home.
Are you trying to buy a new home using the equity in your current home to pay the down payment? If so, know that you are not alone. Lately, we’ve been having conversations about this with many of our clients, as the situation can get pretty complicated. However, today we are here clear things up.
First, know this is different than paying in cash. When using equity to buy, that equity isn’t liquid like cash is. Therefore, you’ll need to find more creative ways to access that money at the closing table when buying. The easiest way to do this is to sell before you buy, but that’s not always possible for everyone.
“Lenders offer great tools to help you access your equity.”
If you want to buy before you sell or do the two at around the same time, you’ll need to figure out how to access that money. When using a lender, two of your options are using a bridge loan or mortgage recasting. These have been beneficial for a lot of our clients lately, and they can help you too. They’re helpful when you don’t want to move twice and can’t get the two closings to line up.
These are fantastic options to explore, and they can help you tap into your equity to buy a new home. They’re great tools from lenders that you could consider. It all starts with having a conversation with the right group of professionals, and we can help you set that up. In the meantime, if you have any questions, don’t hesitate to reach out. You can call or email us anytime, and we would be happy to hear from you.