Buy before you sell · · Mike Certo, NMLS #260555
Can I buy before my current home's sale closes?
Yes, and this is the cleanest path of all. Once your current Arizona home is under a signed sale contract and the buyer's financing contingency is cleared, we leave that home's payment out of your qualification entirely. You don't have to wait for the sale to actually close to buy the next one.
How the pending-sale path works
This is the strongest version of buying before you sell. The moment your home is under a real contract and the buyer's loan is locked in, the lender treats your current payment as gone for qualification purposes, because it's about to be. Your income only has to support the new home, so you qualify cleanly. On some programs there's no minimum equity and no appraisal on your current home required; the signed contract carries it. That makes this the fastest, lowest-cost path to the next home.
You don't have to close on the old house first
The common fear is having to perfectly time two closings, or close the sale, move out, and rent somewhere in between. You don't. An executed contract with cleared contingencies lets us leave the old payment out before that sale closes, so you can close on the new home first and let your sale finish on its own schedule.
Using your sale proceeds for the down payment
Your anticipated net proceeds from the sale can usually fund the down payment and closing costs on the new home, once the sale is documented and timed to close. If you need that cash in hand before the sale actually funds, our in-house bridge loan can advance it against your equity and pay off when the sale closes.
What we need to document it
It's a short list: the fully executed purchase contract on the home you're selling, and evidence the buyer's financing contingency has been cleared (or the buyer's lender commitment). We track the contingency status with you so the timing lines up and nothing stalls your new-home close.
Already have your home under contract?
Send us the sale contract details and your target purchase price. If your buyer's financing is cleared, we can often qualify you for the next home right away.
Talk to MikeRelated
- All three ways to qualify without selling first
- My home is listed but not sold
- How a bridge loan frees up your down payment
FAQ
Can I exclude my mortgage payment if my house is under contract?
Yes. If your current home is under an executed sales contract that won't close before your new loan funds, and the buyer's financing contingency is cleared, that payment can be left out of your qualification. It's the cleanest, lowest-cost way to buy before you sell.
Do I need to close on my old house before buying the new one?
No. Closing first isn't required. An executed contract with cleared contingencies lets the lender leave the old payment out before the sale actually closes, so you don't have to time the two closings perfectly or move twice.
Can I use my pending-sale proceeds for the new down payment?
Often yes. Your anticipated net proceeds from the sale can fund the new home's down payment and closing costs when the sale is documented and timed to close. If you need the cash sooner than the sale provides it, a bridge loan can fill the gap.
What documents prove a pending sale to the lender?
A fully executed purchase contract on the home you're selling, plus evidence the buyer's financing contingency is cleared (or the buyer's lender commitment). That's the standard documentation that lets the old payment come out of your qualification.
Does the buyer's financing contingency have to be cleared?
Yes. If the buyer of your home still has an open financing contingency, the file needs to show it's cleared (or the buyer's lender commitment) before your payment is excluded. We track this for you so the timing lines up.