If your existing house is too big or too small, or you are relocating, some important decisions will need to be made around selling your current property and buying a new one. Should you sell first before buying? Is it possible to get bridging finance?
These are questions best put to your mortgage advisor in Christchurch; however, here are some general answers to these questions to get you started.
Your first decision will be whether you should buy or sell first. Your mortgage advisor in Christchurch will paint the picture of the two scenarios, and you can select the option that is going to work best for your situation.
You can take some time to scout around for the perfect new home in the ideal location. The risk is that if you find the right place and haven’t yet sold, you may be stuck with two properties which can bring financial challenges.
You can also use the option of putting in an offer on the new home, subject to the sale of your existing home, but this offer will not be first prize for the seller, and you could miss out on your perfect home.
The upside of this option is that you will then know precisely what your budget is for your new purchase. As a cash buyer, you will have considerably more leverage to negotiate a favourable price on the new property.
The disadvantage of this option is a timing issue. If you have sold your home and have not yet found the right new home, you might find yourself in need of a rental or other alternative living arrangements until the new purchase is finalised. In this scenario, your mortgage advisor in Christchurch will advise you to seek a more extended settlement period from the buyers of your home, giving you a bit more time to find the perfect new property.
Bridging Finance Tips From Your Mortgage Advisor In Christchurch
If you need financing in a hurry, for example, when you find the perfect spot and haven’t even started the selling process on your existing property, you can apply for bridging finance. This is available in two formats:
- Open-ended bridging: in this scenario, there is no fixed end date or end position; it is a situation where you will have two mortgages. Your financial institution will only entertain this prospect if you can prove your ability to service both debts.
- Closed bridging: here, the financing is more likely to be granted because the first property is in the process of being sold, and settlement is imminent.
Get in touch with Simpler today to find out how we can simplify your house buying and selling experience. Our expert mortgage advisors in Christchurch can give you great advice and find the best mortgage rate in the simplest possible way.