Buying First
Buying your next property before selling your current one can be tempting, particularly when your ideal home or a great deal presents itself. While buying before selling does have its advantages, it’s certainly not without risks.
When you buy before selling, you will have time to paint or renovate your new property, and can move directly from your current home to your next one, saving you the expense and inconvenience of arranging interim accommodations, storage for your belongings, and two moving days.
In addition, you’ll have no doubts as to when you can take occupancy of your new home, exactly how much that home is going to cost, and what fixtures you will need to take with you when you leave your current home.
However, the advantages need to be weighed against the risk. If you buy a home prior to selling your current one, it means paying two mortgages at the same time. Will your mortgage company let you take on two mortgages? A lot of people plan to get bridge financing but don’t realize that bridge financing is usually only available if your present home is sold first. Talk to your mortgage company before putting in that offer.
In a buyer’s market, when homes generally don’t sell quickly, purchasing a new home before selling your current one could result in your being saddled with paying two mortgages for a longer period than you had anticipated or can afford. What’s more, you may have to lower the asking price of the home your are selling in order to get if off your hands.
In a seller’s market, when there are more buyers than properties to purchase, buying before you sell carries less of a risk since you should be able to sell your home faster. This means a shorter period for which you would be in the position of having to make two mortgage payments.
When your home has sold and you have purchased a new home, consider bridge financing for a week or two. This allows you time to paint and move in without the big rush. Closing on both homes and moving the same day is very stressful and you may have to pay your mover to sit at the curb of your new home while waiting for the keys. | 
