# Best way to finance new house purchase BEFORE selling old house



## Addy (Mar 12, 2010)

Can I please get some feedback on what you think is the best way to go about financing purchasing a residence when your current residence is not sold yet? Our current home is fully paid off, and we will qualify for a fairly large mortage on a second / new residence, but I'm not sure how the logistics of selling a house after you purchase another works. What type of mortage would you take out so you can ensure the $ from the sale can be immediately put towards your new mortage? Is the only open an open mortage? Is there some sort of temporary financing available to tide us over then we take out a conventional mortgage?

Please not we will be contacting a mortgage broker, but I am looking for opinions beyond what they would offer me simply to make sure I'm being steered in the right direction and being told everything I should be.


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## Guest (Mar 3, 2011)

Addy said:


> What type of mortage would you take out so you can ensure the $ from the sale can be immediately put towards your new mortage? .


I was in the same situation ... I took out an open mortgage of $100K on the old house by walking into a bank with the thinking I hope I sell it but might have to rent it out. I'm thinking I had the $100K in a matter of days and fortunately I did sell the old house within the month ... at the time I was just too busy building (well ok, contracting) the new house to be bothered with also being a landlord.


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## Dana (Nov 17, 2009)

You could also take out a HELOC against the 1st house and then pay it off with the proceeds of the sale. A HELOC is usually open, re-advanceable and payments can be as small as interest only, so it would give you lots of options.


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## LBCfan (Jan 13, 2011)

We went the HLOC route but we had 65% of the new purchase in cash to contribute.


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## marina628 (Dec 14, 2010)

We took a heloc on old house to buy the new house and paid it off when the house sold.


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