Have a question I wanted to ask here. We are relocating and have found a home we would like to purchase. The problem is, we have just listed our home on the market and don't have it under contract to sell.

Is it advisable (loaded question I'm sure) to put an offer in on new home before under contract on current home? We will qualify for new home just fine without the sell, we just wouldn't be able to do the 20% down to knock out PMI.

My thought is to potentially purchase new house and not worry about the sale of current home, making it contingent on our sell etc.. Once that home sells, do a refinance to put the 20% down.

Am I overthinking this or make sense at all?

If you qualify that is what matters most not the down payment or loan program. I'd offer non contingent if that the house you want.

As for PMI how much are you putting down without selling? If 10% or more a good scores the cost of PMI will not be scary. You can send a large principal amount later to reduce the payment and may get the PMI waived but that is lender specific.

Thanks for the info. I'm going to have a call with our lender to see what it would look like both ways. Just want to put our best foot forward as we are needing to relocate sooner rather than later and don't want to go through the hassle of renting etc.

Love to chat with you. We have several bridge options that would potentially get you around the contingency and the PMI issue. My email is my screen name here. We have been the title sponsor for this board since the start in 2007.

I was in this situation when purchasing my current home in 2017. We were buying in an area where desirable homes were off the market in just a few days so we had to act fast. Our offer was accepted before we could get our current home on the market. We put 10% down, took out a bridge loan for another 10%, and a traditional mortgage for the remaining 80%. This enabled us to not have PMI.

When our previous home sold, we used the proceeds to replenish our savings and to pay off the bridge loan. Unfortunately, it took about 7 months to sell the previous home. Hopefully your other home sells quicker than mine did, but 7 months of 2 mortgage payments is not something we had planned on.

This is exactly what we are going to do with our lender.

Sorry for not reaching out Jay. Neither of the homes are in Texas so wasn't sure about out of state for you guys so stuck with our current setup.

we lend in 12 states. Where state are you buying in?

South Carolina.

Ah, ok, we are NOT licensed in SC.