10 biggest mortgage mistakes
Thinking you can carry two mortgages
Who wants to move twice? If you’re moving from one house to another, you might be tempted to buy the new home before selling your current one.
This can be a mistake unless you have considerable cash reserves, says certified financial planner Curtis W. Chambers, founder and managing member of Chambers Financial Group in Clearwater, Florida. An unsold home with a mortgage can mean carrying two loans.
"I see this happen all the time, and it can be a tremendous source of stress. It is usually easier to buy a home than to sell one," Chambers says.
Once you sell, you’ll have a 30- to 60-day closing period to find a new home and make a seamless transition, assuming both closings go smoothly.
If they don’t, or if you can’t find your new home that quickly, put all your nonessential belongings in storage and look for a monthly rental.
It will be a hassle, but it will eliminate the risk of carrying two mortgages and relieve the pressure to buy any new house instead of the right new house.