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Moving up to my next home

How do I buy and sell without getting stuck in between?

Step 3 of 6

How much can I borrow while I still own this one?

The answer

Your lender counts your current mortgage in your debt-to-income ratio until it's sold, so the pre-approval may look smaller than you expect. Tell the lender your sequencing plan up front: they can write the approval assuming the sale closes first, or structure a bridge. Honesty here saves a re-approval later.

Same paperwork as the first time: pay stubs, tax returns, statements, plus your current mortgage statement and the CMA.

How long
Most people spend about 5 days here.
What to do0 of 5 done
  • How to: Told my lender about my current mortgage and plan

    Tell the lender you still own a home and how you plan to sequence it

  • How to: Have my pre-approval

    Get pre-approved for the next home with the current payment counted

  • How to: Know how the number changes after my sale

    Ask how the approval changes once your home is under contract

  • How to: Compared two lenders

    Compare two lenders on the full offer, not just the rate

  • How to: Know my rate-lock plan

    Lock the rate when you're within the window that makes sense

Go deeper
What people wish they'd known
  • Hiding the current mortgage until underwriting. They find it, and the approval gets redone under pressure.
  • Assuming your pre-approval already assumes the sale. Ask which scenario it's based on.
  • Skipping the bridge-loan terms. Some have short deadlines and penalties if the home doesn't sell in time.

From the Thrive team

  • Ask specifically about a home-sale contingency in your purchase offer and whether the lender's approval supports it.
The next thing people ask

What should I look for this time that I missed last time?

Go to step 4

Questions you'll probably have

Questions about your situation?

Elliott or Ashley will answer, usually within one business day. No pressure, no pitch.

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