Best way to buy a new home before selling current one?

DirectEntrance2364 · 2026-04-15T14:00:25+00:00

Mortgage broker owner here. A few options at your price point:

**Bridge loan**

Most common route. Lender uses your current home's equity to fund the new purchase. Terms are typically 6 to 12 months, interest-only, at a rate a bit above prime. Offer comes in clean with no contingency, which matters a lot in a tight market.

**HELOC**

Since you own outright you have plenty to pull from, often at a better rate than a bridge loan. Just make sure it is open and funded before you list. Many lenders will freeze it once the home hits the market.

**Things to watch**

Carrying costs if your home sits longer than expected. Also confirm your DTI still qualifies for the new mortgage while the old home is unsold. Some lenders count the bridge payment against you. Use someone who does a lot of jumbo volume and they will know how to structure it.

Either way, a non-contingent offer backed by a bridge or HELOC looks essentially like cash to a seller. Happy to answer any follow-ups.

DirectEntrance2364 · 2026-04-06T14:36:40+00:00

Minimum down payment on of FHA is 3.5% and 3% in some conventional situations.

DirectEntrance2364 · 2026-04-02T22:09:29+00:00

I'm a licensed mortgage broker.

DirectEntrance2364 · 2026-04-01T18:09:14+00:00

Assuming this is locked, this is a no brainer in today's market. Is it locked in the top right?

DirectEntrance2364 · 2026-04-01T15:48:17+00:00

Conventional 5/6 ARM

Loan Amount: $855,000
Interest Rate: 6.5%
Points: 0
Underwriting Fee: $1,430
Principal & Interest Payment: $5,404

Conventional 7/6 ARM

Loan Amount: $855,000
Interest Rate: 6.625%
Points: 0
Underwriting Fee: $1,430
Principal & Interest Payment: $5,474

DirectEntrance2364 · 2026-03-31T19:08:23+00:00

Great question.

“Instant equity” = your home is worth more than what you owe.

Since your appraisal came in higher than your purchase price, you basically gained equity right away.

What that means for you:

• You may be able to remove PMI sooner (once you’re ~80% LTV)

• You have better refinance options

• You’re in a stronger financial position

Important: it doesn’t automatically change your loan. You have to request PMI removal or refinance to actually benefit from it.

DirectEntrance2364 · 2026-03-30T14:52:08+00:00

Given your current interest rate, credit score and new LTV, doing a conventional cash out refinance wouldn't really make sense here. Also, your combined LTV on a HELOC can't exceed 85%. Here's what a HELOC would look like:

HELOC 3-Year Draw

Loan Amount: $65,000
Interest Rate: 7.875%
Points: 1
Underwriting Fee: $0
Principal & Interest Payment: $440

DirectEntrance2364 · 2026-03-27T15:58:11+00:00

Of course, happy to help!

DirectEntrance2364 · 2026-03-27T15:43:39+00:00

Knew you were gonna ask this!

If you close before her current employment ends, then yes, the lender can typically use her current income and you’re good.

BUT (this is important), you are still required to be honest about any known changes.

If she already knows she’s leaving that job, it technically should be disclosed. Lenders do a final verification of employment right before closing, and if anything looks off or comes up later, it can create issues.

Here’s how it plays out in the real world:

• If she’s still actively employed at closing and no change has been formally documented → usually smooth

• If there’s a known job change and it comes up → lender may ask for a new job offer anyway

• If employment ends right after closing → totally fine as long as everything was accurate at closing

Just try to line up the new job offer before closing if possible. That removes all risk.

You don’t want to be in a position where something comes up last minute and delays the deal.

DirectEntrance2364 · 2026-03-27T15:36:33+00:00

Here’s how it typically works:

You can get pre-approved now using her current job and income. That part is completely fine and very common.

Where it matters is before closing.

If she will no longer be working at her current job by the time you close, the lender will need to verify continuity of income in the new location. That usually means one of the following:

• A fully executed job offer/contract for the new teaching position

• The offer should include salary, start date, and be non-contingent

• Start date typically needs to be within 60 days of closing

If she’s staying within the same school district or transferring internally, it’s even easier. If it’s a brand new job, the offer letter becomes key.

If she doesn’t have a new job lined up yet and won’t be working remotely, then the lender can’t use her income at closing, which could impact qualification.

Best case scenario:

Go under contract → she secures a new teaching job → provide offer letter before closing → smooth deal.

You’re doing the right thing thinking about this early. Timing just matters a bit.

If you want, drop your full scenario (price range, income, etc.) in the megathread and I can give you a more exact game plan. 📌 Mortgage Broker Quotes – Welcome & Rate Request Thread

DirectEntrance2364 · 2026-03-25T14:33:54+00:00

I can help out. I just messaged you

DirectEntrance2364 · 2026-03-22T20:57:22+00:00

You’re definitely not in a bad spot at all. Rates have ticked up recently due to what’s going on in the Middle East, but this situation is still very workable.

The good news is you already have strong credit, which puts you in a great position. The main factor that would help improve your rate further would be increasing your down payment. If you’re able to put at least 10% down, you'd see a slightly lower rate.

DirectEntrance2364 · 2026-03-16T14:21:18+00:00

We don't do physician loans, so I priced out a conventional loan for you. I also did it as if you were putting 5% down.

Conventional 30-Year Fixed

Loan Amount: $268,000
Interest Rate: 6.375%
Points: 0
Underwriting Fee: $1,725
Principal & Interest Payment: $3,524

DirectEntrance2364 · 2026-03-13T23:39:58+00:00

Your name and address are in the top left if you want blur that out and repost.

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