We are different from other Buy Before You Sell Companies. Other companies purchase your new home and rent it to you. We are different. We are a Buy Before You Sell Lender, so you always have ownership of both your current home and the home you are going to purchase. We simply provide line of credit/short-term loan (or sometimes called a bridge loan) that enables you to purchase your new home with OUR funds before your sell your departing residence. As with the purchase to rent model, and with our model of using a short term loan to purchase a new home before you old home sells, you will need to be prepared to make payments on your old home and the new home.

One significant advantage of being a Buy Before You Sell Lender is that we can help you buy before you sell, and minimize having to make double payments for up to three (3) months while your old home sells. We can do this by simply adding the up to three interest only payments on the back of your loan. This would give you up to 90 days without having to make a payment on the new home. This would give you time to sell your current house before making a monthly payment. The interest would simply be paid back when you payoff the loan in full. This is an optional delayed payment feature.

We do require customers have at least six (6) months of funds available to pay for their old mortgage payment and our Buy Before You Sell line of credit/short term loan. These funds are called reserves and can come from flexible places such as: (1) your bank account or investment accounts; or (2) from a 401k loan or an existing HELOC on your old house (please note that a HELOC must be set up before you decided to purchase a new home since HELOC lenders will generally not offer a HELOC if you are planning to move or sell your old home). (3) Even gift funds or a co-borrower. You can also have your Realtor to structure your real estate contract for your new home with a seller concession. A seller’s contribution can be done with raise the final offer by $5k or $8k in exchange for a sellers contribution of this same amount so that you don’t have to bring as much to closing. With all of these options, the key point is to plan ahead and make sure you have more cash on hand than you think you need and to not underestimate how quickly your old home will sell.

We also highly recommend that Buy Before You Sell customers, set the sale price for your existing home in an aggressive manner. But, by executing the buy before you sell, you can move out of your current house, declutter and even stage your home which often allows you to sell quicker and for more than a lived in home. https://www.nar.realtor/blogs/styled-staged-sold/why-staging-matters-even-in-a-sellers-market

Our Buy Before You Sell loan is a great way to help you make the transition to a new home stress free, hassle free, and avoid having to match the date your old house sells with the date your new home closes. No taking the kids and dogs out of the home for showings! That said, you need to protect yourself and have sufficient financial reserves on hand to cover any delays with the sale of your old home. If you have any question about how to work thru these issues when considering a Buy Before You Sell loan, please contact us.

From the Realtor side of the process, our short term loan/line of credit is just like a normal loan. The key point is that we are able to qualify Mr. and Mrs. Smith to own both homes at the same time since we are lending our own funds for their purchase. When you submit an offer there are three documents we recommend you send to the sellers agent with your offer:

Proof of Funds letter (we also suggest that you provide a bank statement from Mr. and Mrs. Smith to document their 5% down payment and use our proof of funds letter to document the other 95% of the purchase price).

FAQ document (this is intended to be sent to the seller agent to answer their basic questions about our program), and

Addendum/Limited Appraisal Waiver form (this is an amendment to the standard TREC contract we drafted to help Buyer’s agents who are using our program). This document has a limited and full appraisal waiver language for you to use if you want. This addendum also explains how our program works and will hopefully answer any questions the Sellers agent may have about how the contract is drafted. You are fee to use this in your contract but it is up to you to advise Mr. and Mrs. Smith on the implication of purchasing a new home with a Buy Before You Sell line using a limited or full appraisal waiver.

I am also attaching a flyer that explains our full line of Dominate with a Cash Offer® loan programs and here is a link to our website with more details on our program (https://hurstlending.com/dominate-loans/buy-before-you-sell/). Feel free to share this with the Sellers agent if you think this is helpful.

Please let me know if you have any questions or if I can help in any other way. Hope you get the house!

Thanks.

Hurst Lending
Loan Officer