You might be so focused on getting a new home that you prioritize buying one before selling your current home. If this means youʼll pile a second mortgage on your back, you definitely shouldnʼt buy before you sell. Sure, buying a new home before selling your current home would make it easier to move. You wouldnʼt have to worry about where to store your stuff or where to stay. But an easier move isnʼt worth the risk and potential complications of having dual mortgages.

Below are the main reasons why you donʼt want to buy a new home before selling your old one:

– Getting another mortgage could be tricky. Qualifying for a new mortgage will be more difficult, if not impossible, if youʼre still tied to your current home mortgage. Maybe you could actually handle paying two mortgages for a month or two. Still, a home sale takes time. Depending on your home, it could sit on the market for months or even a year! Thatʼs a quick way to drain your emergency fund for something that isnʼt a real emergency.

– Emergencies could destroy your finances.

Is It Ever Okay to Buy Before You Sell? If you have heard of Dave Ramsey and have reached Baby Step 7 and are living and giving like no one else, by all means, pay cash for that new home and worry about selling your other one later. Not sure if youʼre there yet? Ask yourself these questions:

– Are you debt-free?

– Do you have 3–6 months of expenses in your emergency fund?

– Is 15% of your take-home pay going toward retirement?

– If you have kids, are you contributing toward their college fund?

– Is your current home paid off?

– Do you have enough cash to put 100% down on the new house?

If you canʼt say yes to all of the above, then hold your home-buying horses. No home is worth putting your financial security at risk. Can I Sell and Buy on the Same Day? With the help and coordination of an expert real estate agent, you might be able to sell your current home and close on your next home on the same day. However, keep in mind that a same-day closing will require perfect timing on three different timelines —yours, your buyerʼs and your sellerʼs. So donʼt put all your hope into selling and buying on the same day—have a plan B to reduce the gap between closings as much as possible.

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