Hey, hopefully this is the right place for this question. My wife and I own our house outright, no loans or mortgage. We’re looking to move and want to start the process. We want a house that’s equal to or a bit less than our current value. I’m wondering if I can get a HELOC for 80-90% of my home’s value to make cash offers. Should I sell my current house and find a temporary place while we look? I really dislike the idea of moving twice. What do you think?
I did this! Got a big HELOC on my existing home to make a cash offer. Just a tip—don’t mention selling your home while applying for the HELOC. Better to keep that to yourself.
Lennon said:
I did this! Got a big HELOC on my existing home to make a cash offer. Just a tip—don’t mention selling your home while applying for the HELOC. Better to keep that to yourself.
Good call! Didn’t think about that. What’s a HELOC exactly?
@Noah
It’s a Home Equity Line of Credit. Basically, it lets you borrow against the value of your home. Super handy!
You can also make offers on a new house contingent on selling your current one. But be careful—those offers might not be super appealing to sellers.
Vance said:
You can also make offers on a new house contingent on selling your current one. But be careful—those offers might not be super appealing to sellers.
Yeah, I’ve heard that. I guess they want guaranteed buyers, right?
@Marlow
Exactly! Plus, you may have to pay more for the new place if your old one doesn’t sell fast.
I had a similar situation. I sold my house and moved to a rental while looking for a new one. It was a bit of a hassle but worth it in the end!
Rowen said:
I had a similar situation. I sold my house and moved to a rental while looking for a new one. It was a bit of a hassle but worth it in the end!
Did you find a good rental? I’m worried about the cost of moving twice.
@Vann
Yeah, it was tricky but I found a decent place. Just shop around and compare prices!
Honestly, using a temporary place sounds smart to avoid the whole loan process. Less stress!
Ode said:
Honestly, using a temporary place sounds smart to avoid the whole loan process. Less stress!
For real! I hate dealing with loans too. Just keep it simple if you can.
You can definitely own two homes at once. I did it when I bought my cabin while selling my VA house. It worked out great!
Laken said:
You can definitely own two homes at once. I did it when I bought my cabin while selling my VA house. It worked out great!
That sounds awesome! How did you manage the finances?
@Ozzy
I got a mortgage on the new place and paid it off after selling the old one. Easy peasy!