In selling my home and buying a new one...

In selling my home and buying a new one, what can I do to be sure I won't get stuck with two mortgages?

Your best strategy is to place your home on the market far enough in advance to attract a buyer, negotiate a contract with an acceptable settlement or closing date, then go house hunting.
If you find a new home before you've sold your old one, you have several options.

- You may be able to arrange a bridge loan (also "swing" loan) secured by the equity in either your old or new home to cover your expenses until the closing on your old home. Lenders of bridge loans sometimes require you to have a purchase contract on your old home. But bridge loans can sometimes be found if your home is not yet sold.

- If your move is job-related, but no home-purchase relocation program is in effect, you might persuade your employer to either provide a bridge loan or pick up some of your relocating expenses.

Your agent can help you decide how to shift your strategy to fit your specific circumstances.
Points - A one-time charge required by the lender which is paid by buyer and/or seller at settlement or closing. Each point is one percent of the new loan amount. Example: one point on a $78,000 loan is $780; $78,000 x 1% = $780. Points are charged by lenders to increase the yield on their loans, and thus attract money into the housing market. Sellers sometimes pay some or all points to attract more buyers - especially now that points paid at settlement or closing by sellers generally can be deducted as a Schedule A mortgage expense by buyers.