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Old 01-06-2018, 06:21 PM
 
4,190 posts, read 4,547,520 times
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I plan to sell my house in Michigan in the late part of this year to early next year to move to either NC or FL. When I bought my house in late 2014, I went through similar bidding wars and losing houses because of inventory. I thought that would have passed by now. Looking at the market mainly in Charlotte, it seems house prices are as hot as ever. I feel like I will overpay just because of the demand.

I'm sure my house in Michigan will sell very fast. My daughter will be starting college during that time so I would like it to be as stress-free as possible. I will work with the USAA realtors as I have worked with them 3 other times to buy and sell.

Also with selling, I have a VA loan at 3.25% that I would like to transfer that to a fellow veteran. I'm not sure how that process works but I know it will attract even more buyers.

Will the contingency of selling my house before completing the purchase turn off sellers?

My question is what is the best way to buy and sell at the same time?
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Old 01-07-2018, 02:30 AM
 
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I'm in the Carolinas and it is definitely a hot market in many areas!

Regarding "transferring" your interest rate to a fellow veteran, the process you are speaking of is called an assumption. The veteran must qualify for a VA loan and then may be able to assume your loan and interest rate. It is a somewhat complicated process and with VA rates still very low (around 3.75%) I personally would not consider having someone assume my VA loan. It is only a marketing benefit for the seller if rates have gone up substantially and it's a tough seller's market. The drawback to a seller when letting someone assume their loan is that it will tie up their entitlement and could hinder their ability to purchase another home using a VA guaranteed loan.

It's hard to say if a house to sell contingency would be a deterrent for a seller; that would be a good question to ask a realtor in the area you wish to buy. I live in a hot market and some sellers won't take a contingency but some sellers will. So it all just depends on the seller.

Give yourself a few days between closings and the process shouldn't be too stressful. Simultaneous closes get a little hairy so I would avoid that and plan to stay in a hotel for a few days before closing on the new home.
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Old 01-07-2018, 06:32 AM
 
Location: Cary, NC
31,605 posts, read 55,335,524 times
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Loan assumption?
Don't allow it without understanding the stipulations from the lender and probably with good legal counsel.
You may find that you are still on the hook for the balance if your buyer fails to pay. In a worst case situation, the buyer may trash the house and you are stuck with a mortgage balance on a devalued property.

Yes, much of the Charlotte area has demand vs. supply balance issues.
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Old 01-07-2018, 01:59 PM
 
4,190 posts, read 4,547,520 times
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I hear interest rates will creep up to middle 4 or 5 % by the end of 2018.

I was looking at the Concord, Harrisburg or Davidson area. I've lived all over the Fayetteville area, Morrisville by RDU and Cary area. So Charlotte will be a new experience that I'm looking forward to living. I have visited many times though. My daughter will be applying to NC State of UNC-Chapel Hill so I have to get her moved into her dorm the same timeframe of the move.

This is my first VA loan and I did great with the interest rate. I don't know if I will be so lucky this time going into late 2018. I'm wondering what the rate percent difference is between conventional and VA?
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Old 01-07-2018, 03:08 PM
 
93 posts, read 65,687 times
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Quote:
Originally Posted by KayAnn246 View Post
I hear interest rates will creep up to middle 4 or 5 % by the end of 2018.

I was looking at the Concord, Harrisburg or Davidson area. I've lived all over the Fayetteville area, Morrisville by RDU and Cary area. So Charlotte will be a new experience that I'm looking forward to living. I have visited many times though. My daughter will be applying to NC State of UNC-Chapel Hill so I have to get her moved into her dorm the same timeframe of the move.

This is my first VA loan and I did great with the interest rate. I don't know if I will be so lucky this time going into late 2018. I'm wondering what the rate percent difference is between conventional and VA?
You don't have any control over your "luck" so don't get your hopes up on getting that 3.25% again, at least not any time soon. Rates are controlled mostly by the 10-year treasury bond and my prevailing rate on a VA is 3.75% right now with no origination and no points. Conventional rates are typically .5% higher than VA. Rates have been rumored to be going up for at least the past two years and they are pretty much staying steady, given a little fluctuation now and then. Don't get too wrapped around the axle over rates...they will be what they will be. Just keep your credit clean and high and you should be eligible for best rates.

If you qualify for a VA, I highly recommend using that program, especially if you are buying your "forever" home and you are exempt from the funding fee or have at least 5-10% to put down, which will dramatically reduce the funding fee. In the long run, with it's lower rate and no pmi, the VA program is the best one out there!
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