Hispanic couple outside home with sold sign holding keys in hand looking at camera smiling

    The idea of having to buy and sell homes simultaneously can seem like a daunting task to homeowners, but with the right approach and guidance, it’s a feat that can be achieved smoothly and successfully with the help of JVM Lending’s expert team.

    The complexity of the task is evident, but it doesn’t have to be overwhelming. We are here to unravel the mystery around “buying before selling” and introduce you to strategic solutions like rent backs, bridge loans, and short-term housing.

    Understanding the Process: How to Buy Before You Sell

    Embarking on the journey of buying a new home before selling your current one can undoubtedly bring about a mix of emotions. After all, you’re not just dealing with one significant financial transaction, but two. The key lies in gaining a clear understanding of your options and planning effectively.

    Planning is a critical aspect of this process. Timing is everything when you’re buying and selling simultaneously. Our expert team can help you devise a strategic plan, aligning the timelines of both transactions as closely as possible.

    At JVM Lending, we offer a wealth of resources to help you understand the process of buying before selling. Our team of experts can walk you through each step, ensuring you feel confident and prepared. We’ll guide you through assessing your financial situation, exploring financing options, and understanding the potential impacts on your lifestyle and schedule.

    Leverage A Rent Back Agreement

    One strategy that is gaining popularity is utilizing a rent back agreement.

    A rent back agreement is a provision that allows you, as the seller, to continue living in your current home after the sale for a predetermined period. This period typically lasts anywhere from a few days to a few months, depending on the terms agreed upon by both parties.

    In the competitive real estate market, a rent back can be an appealing option for buyers as it provides them with an immediate return on their investment. On the seller’s end, it offers a flexible, cost-effective solution to the problem of where to live while transitioning between homes.

    The beauty of a rent back agreement is that it offers a win-win situation for both the buyer and seller. For the buyer, it means they have an investment that starts to pay off immediately. For the seller, it provides much-needed flexibility. You can stay put while finalizing the purchase of your new home, effectively eliminating the need for short-term housing or storage for your belongings.

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    Short-Term Housing: An Interim Home

    Another alternative to consider is short-term housing. If you have a gap between the sale of your current home and the purchase of your new one, short-term rentals, like Airbnb or corporate housing options, can fill that void.

    Short-term housing is a versatile solution that can work for various circumstances. It can serve as a temporary home while you’re waiting for your new home to become available or while you’re still searching for that perfect place.

    Pros and Cons of Buying Before Selling

    When navigating the journey of buying a new home before selling your current one, bridge loans often surface as a viable option. These short-term loans “bridge” the gap between the sale of your current home and the purchase of your new one, providing the needed funds for a down payment.

    However, as with any financial tool, bridge loans come with their unique set of pros and cons. Understanding these will help you make an informed decision, ensuring that the path you choose aligns with your financial situation and homebuying goals.


    • Provides time to find your ideal home without pressure
    • Potentially higher selling price for your current home
    • Avoids the cost and inconvenience of storage or multiple moves


    • Risk of paying two mortgages if current home doesn’t sell promptly
    • Higher interest rates and costs sometimes occur with bridge loans
    • Finding short-term housing can be challenging

    Bridge Loans: Bridging the Financial Gap

    Bridge loans are a viable solution for those considering buying a new home before selling their current home. These are short-term loans that “bridge” the gap between the sale of your current home and the purchase of your new one.

    The beauty of a bridge loan is that it uses your current home’s equity to provide the funds needed for the down payment on your new home. This allows you to secure your dream home without waiting for your current house to sell.

    However, keep in mind that bridge loans come with higher interest rates and costs than traditional mortgage loans.

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    Buying Before Selling: Next Steps

    So, how do you buy a new home before selling your current residence effectively?

    First, get a pre-approval for your new home loan. This will give you a solid understanding of what you can afford and show sellers you’re serious.

    Next, consider your options carefully. Are you comfortable staying in your current home as a renter after selling it? Would you prefer moving into short-term housing for a bit of time? Can you handle the financial demands of a bridge loan? Answering these questions will help guide your decision.

    Once you’ve mapped out your strategy, list your current home for sale. Ideally, you’ll want to align the closing date of your current home sale as closely as possible with the closing date of your new home purchase.

    Lastly, stay flexible. The real estate market can be unpredictable, and plans may need to change. Being open to adjustments will make the process smoother.

    JVM Lending: Your Partner in Buying Before Selling

    When it comes to buying a new home before selling your current residence, expertise and experience matter. With years of experience in the real estate and mortgage industry, our team of experts has guided countless clients through this intricate process with finesse and precision.

    JVM Lending understands that each client’s situation is unique. We pride ourselves on offering personalized solutions tailored to meet your specific needs and objectives. Whether you’re considering a rent back agreement, exploring short-term housing options, or thinking about a bridge loan, our team will help you weigh all factors, such as current mortgage rates, your financial situation, and the housing market conditions in your area.

    Our commitment goes beyond merely facilitating a transaction. We believe in educating our clients, empowering you to make informed decisions that are in your best interest. With JVM Lending, you’re not just getting a mortgage lender; you’re partnering with a dedicated team that’s committed to your success.

    The process of buying before selling may seem daunting, but with JVM Lending by your side, you’ll have the confidence and peace of mind knowing that you’re making the right decisions for your future.

    Ready to Make the Move?

    Buying a new home before selling your current residence is an exciting journey, one that requires careful planning and strategic decision-making. Each option—be it rentback, short-term housing, or bridge loans—has its unique advantages and challenges.

    We understand the intricacies of the local real estate market. This knowledge allows us to provide you with timely and accurate advice, positioning you to make informed decisions.

    Ready to take the first step towards your new home? Connect with JVM Lending today, and let our expertise guide your journey.

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