If you own a home and dont have a mortgage...i know...rare...a lil long

MrsSoto Posted: Jun 23, 2010 04:30 PM

If you own a home and dont have a mortgage...i know...rare...a lil long

im a licensed RE agent, i should know this but i dont (dont actively sell)

anyways...if you go to sell your house and you basically will be using only the proceeds from the house for your next house, how to you show that to the sellers of the new house you want to buy.

meaning, you always have to show a pre-approval from a bank showing you are approved for a mortage before you can sign the contract...or for that matter before the agent will take you out however if you dont have a mortage on your current home and so it will just be the cash proceeds of the first house, how do you show to the new house that you have the money.

im thinking that maybe you can show the contract on your first house???

i work with all these RE agents but i cant ask anyone because when i do, theyll all know i will be looking to buy soon and i havent figured out who im working with yet

???

tia!

geegee827 Posted: Jun 23, 2010 04:47 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

You show your satisfaction of mortgage - or if you never had a mortgage, you would show your closing statement showing it was an all cash deal.

alli3131 Posted: Jun 23, 2010 04:52 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

When my parents were selling their condo the first buyer wanted to buy it all cash. They gave my parents all sorts of financial statements such as their bank statements showing they had the cash to pay for the house.

geegee827 Posted: Jun 23, 2010 04:56 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

The people we bought from had paid off their mortgage and were buying a new house ALL CASH!

I believe they had to have the executed contract from us (with our pre-approval letter) to show to the sellers of the house they were buying.

little j Posted: Jun 23, 2010 05:43 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

Posted by geegee827

The people we bought from had paid off their mortgage and were buying a new house ALL CASH!

I believe they had to have the executed contract from us (with our pre-approval letter) to show to the sellers of the house they were buying.

this makes sense

Future Mrs H Posted: Jun 23, 2010 07:33 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

Posted by geegee827

The people we bought from had paid off their mortgage and were buying a new house ALL CASH!

I believe they had to have the executed contract from us (with our pre-approval letter) to show to the sellers of the house they were buying.

Sorry Crashing (I know I am not supposed to yet)

This is it exactly! I was a R.E. Agent for about 10 years and this is what always happened when a buyer had paid off the mortgage and was buying a new home.

VickiR510 Posted: Jun 23, 2010 09:43 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

On one of our homes we have only 3 yrs left on the mortgage. So if we were to pay it off we would show that the loan has been satisfied.

MrsSoto Posted: Jun 25, 2010 08:27 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

thanks guys! okay so showing the contract plus pre-approval of YOUR buyer will work.

next question...maybe ill just start a new post but if you are closing on a new house that you are using the cash proceeds from your previous house but you havent yet closed, how does this work?? well i mean i guess you would technically HAVE to close on your current home first but then where the hellll do people find a place to live and keep all their stuff until they close on the next house if the closings arent within a few days of each other.

i know from working with this that closing get postponded all the time, etc, so what the heck do people do if they are homeless and where do they take their whole house of stuff??

tia loves

geegee827 Posted: Jun 26, 2010 09:34 AM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

Posted by MrsSoto

thanks guys! okay so showing the contract plus pre-approval of YOUR buyer will work.

next question...maybe ill just start a new post but if you are closing on a new house that you are using the cash proceeds from your previous house but you havent yet closed, how does this work?? well i mean i guess you would technically HAVE to close on your current home first but then where the hellll do people find a place to live and keep all their stuff until they close on the next house if the closings arent within a few days of each other.

i know from working with this that closing get postponded all the time, etc, so what the heck do people do if they are homeless and where do they take their whole house of stuff??

tia loves

You can apply for a 'bridge' loan. It's a short term loan that will get you over that hump. Or, you have to sell your old house in the morning and buy your new house in the afternoon or the next day.

You have to make sure that in the contract for your sale you state that there is a period of time (usually 5 days) where you can still live in the house. It's usually a standard paragraph in the rider.

Also, it helps if the house you are selling has a close 'on or before' not an 'on or about' date. On or before means exactly that.....

Clover23 Posted: Jun 26, 2010 10:38 PM

Re: If you own a home and dont have a mortgage...i know...rare...a lil long

yeah you shouldn't close on the old house before you've closed on the new house. and i def. wouldn't recommend the language people try to put in that you can stay in the house after the closing takes place. yes it's an added security, but you don't want to have to rely on that. suppose somthing goes horribly wrong with your new house closing? then you're stuck. that few days you have won't matter. what if you stay in your old house for a few days pursuant to your contract, but, lets say a pipe explodes. who is responsible then? i know im being debbie downer but i've been involved in some awful litigation involving that sort of stuff (as a lawyer not a homeowner lol) and it's just not worth it. close on your new house first.