Using a HELOC To Make Your Move

Here’s how you can use a HELOC to buy a new home before you sell. 

Are you looking to move? If so, you probably need to sell your old home before you can buy a new one. If you’re in this position, how can you sell your house without going homeless? I have a great tip that’s helped plenty of our clients, and I want to share it with you today. 

The big issue in our market right now is our low inventory. Sure, you can get a great deal on your home, but what will you do when you have to buy? Fortunately, we’ve worked closely with lenders to help solve this situation, and you may be able to use a home equity line of credit, or HELOC, to make your move. 

So how would this work? Let’s look at an example: Say you want to move up from your existing house into a bigger one. Because homes have appreciated so much in the last few years, you probably have a lot more equity than you think. In this instance, you can use a HELOC to pull the equity out of your home. It doesn’t cost any money until you deploy the funds, so you can use that cash to pay for a down payment on your new home. 

"You probably have more equity than you think."

Even if you aren’t looking to move, there are plenty of good reasons to take out a HELOC, such as an emergency fund. While I’m not a financial expert, I will caution against spending your equity on things like expensive cars. If you need a lender to speak with about this topic, please reach out to us. We'd be happy to put you in touch with a great one.

If you have questions about today’s topic, please call or email my team. We are always happy to be a resource for you!