Skip to content
  • Join PSECU
  • Refer a Friend
  • Rates
  • Find an ATM
  • Resources
  • Support
PSECU Logo
  • Explore Our Rates

    See today's checking, savings, certificate and individual retirement account (IRA) interest rates

    Have questions? Browse our FAQs
    • Account Types:
      • Checking Accounts
      • Savings Accounts
      • Money Market Accounts
      • Certificates
      • Individual Retirement Accounts (IRAs)
    • Banking Services:
      • For College Students
      • For Teens & Parents
      • For Youth & Parents
      • For Businesses
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Overdraft Services
        Check out PSECU's approach to overdraft services and fees
      • Understanding Money Market Accounts
        Learn how you can increase your savings with greater dividends
  • Explore Our Rates

    See today’s credit card rates

    Have questions? Browse our FAQs
    • Card Types:
      • Classic Card
      • Founder's Rewards Card
      • Penn State Alumni Cards
      • Secured Visa® Card
      • Business Credit Cards
    • Card Services:
      • Balance Transfers
      • Card Comparison Guide
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Dispute a Credit Charge
        Report unauthorized transactions on your card
      • Is a Balance Transfer Right for Me?
        Find out how consolidating can simplify your finances
  • Explore Our Rates

    See today’s auto loan, home equity product, mortgage, and personal loan rates

    Have questions? Browse our FAQs
    • Home & Auto:
      • Mortgages
      • Home Equity
      • Auto Loans
      • Recreational Vehicles
    • Personal & Business:
      • Personal Loans
      • Student Loans
      • Business Loans
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Paying Your Loan
        See your loan payment options
      • Debt Consolidation
        Save money, simplify your budget and reduce stress
  • Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
    • What We Offer:
      • Investing
      • Insurance
      • Auto Warranty
      • Medicare Insurance
      • Estate Planning
    • Quick Links:
      • Set Up a Free IRA in Pennsylvania
        Check out this six-step guide to start reaping tax benefits
      • Missing Out on Insurance Savings?
        Get tips on how to spot savings in your insurance coverage
  • Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
    • Is PSECU Right for You?:
      • What's Digital-First Banking?
      • How We Serve Our Members
      • All Member Services
    • Quick Links:
      • Earn $300*!
        Open a new member account with PSECU and you can earn $300* in bonus cash when you meet promo requirements!
      • New Member Support
        Get the guidance you need to take control of your account
      • PSECU in the Community
        We’re not just about finances - we’re about making an impact.
Login
PSECU Logo
Login
  • Checking & Savings
      • Checking Accounts
      • Savings Accounts
      • Money Market Accounts
      • Certificates
      • Individual Retirement Accounts (IRAs)
      • For College Students
      • For Teens & Parents
      • For Youth & Parents
      • For Businesses
      • Calculators
        Estimate payments, set savings goals and more
      • Overdraft Services
        Check out PSECU's approach to overdraft services and fees
      • Understanding Money Market Accounts
        Learn how you can increase your savings with greater dividends
    Explore Our Rates

    See today's checking, savings, certificate and individual retirement account (IRA) interest rates

    Have questions? Browse our FAQs
  • Credit Cards
      • Classic Card
      • Founder's Rewards Card
      • Penn State Alumni Cards
      • Secured Visa® Card
      • Business Credit Cards
      • Balance Transfers
      • Card Comparison Guide
      • Calculators
        Estimate payments, set savings goals and more
      • Dispute a Credit Charge
        Report unauthorized transactions on your card
      • Is a Balance Transfer Right for Me?
        Find out how consolidating can simplify your finances
    Explore Our Rates

    See today’s credit card rates

    Have questions? Browse our FAQs
  • Loans
      • Mortgages
      • Home Equity
      • Auto Loans
      • Recreational Vehicles
      • Personal Loans
      • Student Loans
      • Business Loans
      • Calculators
        Estimate payments, set savings goals and more
      • Paying Your Loan
        See your loan payment options
      • Debt Consolidation
        Save money, simplify your budget and reduce stress
    Explore Our Rates

    See today’s auto loan, home equity product, mortgage, and personal loan rates

    Have questions? Browse our FAQs
  • Investing & Insurance
      • Investing
      • Insurance
      • Auto Warranty
      • Medicare Insurance
      • Estate Planning
      • Set Up a Free IRA in Pennsylvania
        Check out this six-step guide to start reaping tax benefits
      • Missing Out on Insurance Savings?
        Get tips on how to spot savings in your insurance coverage
    Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
  • About PSECU
      • What's Digital-First Banking?
      • How We Serve Our Members
      • All Member Services
      • Earn $300*!
        Open a new member account with PSECU and you can earn $300* in bonus cash when you meet promo requirements!
      • New Member Support
        Get the guidance you need to take control of your account
      • PSECU in the Community
        We’re not just about finances - we’re about making an impact.
    Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
  • Join PSECU
  • Refer a Friend
  • Rates
  • Find an ATM
  • Resources
  • Support
Routine maintenance is scheduled for 12 AM, Sunday March 16, 2025, and will take several hours to complete. During this timeframe, members will not be able to access digital banking, membership or loan applications, or our call center IVR menu. We apologize for any inconvenience.
We apologize for the inconvenience, but our application for membership is currently unavailable. We are currently working to resolve the issue.
You’re Leaving PSECU's Site

 
 

Select “Proceed” to continue to , or close this window to return to PSECU.com.

Proceed
  1. Back to Home
  2. Resource Center
  3. Home Ownership
  4. How to Buy a House...
Article
3 Minute Read

How to Buy a House Before Selling Your Current Home

Share on email Share on facebook Share on linkedin Share on twitter
how to buy a house before selling your current home

 

Making a move from one house to another is often a necessary step in life, whether you’re downsizing or opting for a larger space. It can be a daunting process, but with a bit of knowledge, you can sell your home and move to the next smoothly.

Options to Consider If You Want to Buy a Home But Haven’t Sold Your Current Home

If you’ve found your dream home and want to purchase it before someone else makes a bid or are moving to a new area after accepting a job offer, you may find yourself in a situation where you’d like to purchase a home, but you have yet to list or sell your current home.

You have several options when deciding how to proceed, with both advantages and drawbacks to each.

  1. Make a Sale and Settlement Contingency Offer

Adding a sale and settlement contingency clause to your offer’s terms allows you to buy your new home only if your current one sells. If the clause’s term specifies a given timeframe for you to sell your home, and you aren’t able to find a buyer for your old home in the allotted time, the terms can state that the offer and contract for the new home are voided.

A home sale contingency allows you to enjoy a variety of benefits.

  • It gives you more time to sell and settle.
  • You won’t have to worry about owning two homes at once or holding two mortgages.
  • You can sell your home and move to the next without needing to secure a place to stay in between transactions.

However, a contingency offer also has some drawbacks.

  • It reduces your negotiating power in a competitive market and gives you a limited amount of time to find a buyer.
  • To remain a competitive buyer, you may have to offer more for your new home than if you bought the home without a contingency.
  1. Rent Out Your Current Home

Even if your home isn’t selling as quickly as you’d like, you can still make a profit by renting out your current house while it’s still on the market. If you can find renters who will pay more per month than the costs of your monthly mortgage and home upkeep, renting out your current home could be a good option.

Renting out your current home offers several potential pros if you’re on a budget.

  • Renting can make the most financial sense if you need extra income while you’re waiting for your old home to sell — as long as the renters pay more than what you owe on your monthly mortgage and in other expenses.
  • You can keep your property to sell later at a potentially better price if the market is expected to rise.

The cons of renting out your home include:

  • Keeping the home clean and staged while holding open houses is far more difficult when renters live in the home.
  • You’ll need to have a down payment saved up before buying your new home since you won’t be able to use the money from the sale of your first home.
  • Renting out your home means you now have added responsibilities as a landlord.
  1. Use a Sale-Leaseback Agreement

Sale-leasebacks allow you to sell your old home but remain there as a tenant until you settle on your new home. The terms of the lease — such as monthly rent and length of the leaseback — are agreed upon by you and the buyer as part of the negotiations.

A sale-leaseback transaction offers several benefits if you’re not quite ready to move out of your old home.

  • If you’ve already had your offer accepted on your new home and know the closing date, a sale-leaseback could be an effective option for a smoother transition between homes.
  • If it’s a booming market at the time, it may allow you to take advantage of selling your home before the market declines.

You’ll also want to consider the cons, though, before choosing a sale-leaseback agreement as an option.

  • While this option gives you more time to close on the sale of your home, you’ll still need to work quickly to avoid paying both rent and a mortgage for an extended period of time.
  • Your monthly rent may be much higher than your mortgage, and you won’t be building equity.

How to Get Money for a Down Payment Before Selling Your Current Home

Buying before selling gives you the advantage of taking your time to find your dream home and not rushing into a new house just because your old one sold. It may also eliminate the process of adding an additional temporary move during the interim period, allowing you to simply move from one home to the other.

What makes this tricky in some situations is that you won’t have the money from selling your current home to put a down payment on your new home. This means you’ll either need to budget and save your money or borrow money for a down payment until your original home sells.

If you’re considering borrowing money for a down payment, you can contact one of our mortgage representatives to determine what loan choices are available to you, and what might be the best fit for your specific situation.

Join PSECU Today

We want to help you reach your financial goals during your move from one home to the next. Check out our mortgage options today. And be sure to review our other money management tips for more information on home buying.

The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

By: PSECU
Need to talk to us directly?
800.237.7328
Routing #: 231381116
  • Facebook
  • LinkedIn
  • Twitter
  • Instagram
  • Pinterest
  • YouTube
Awards Designations
  • Get to Know Us:
    • What's Digital-First Banking?
    • How We Serve Our Members
    • Financials
    • PSECU for Employers
    • Careers We're Hiring!
    • Resource Center
    • PSECU in the Community
  • Quick Links:
    • Rates
    • Calculators
    • Downloadable Forms
    • Become a Member
    • Refer a Friend
  • Contact & Support:
    • Support
    • Browse FAQs
    • Resume an Application
    • Find an ATM
    • Contact Us
  • Download the App:
    • App Store
    • Play Store
  • Sitemap
  • Disclosures & Agreements
  • Terms of Use
  • Fraud Prevention
  • Privacy
  • © 2025 PSECU. All Rights Reserved.
  • NCUA Insured by NCUA
  • Equal Housing Lender Equal Housing Lender