Mortgage 101

I Need to Sell My Current House Before I Can Buy a New House – How Does That Work?

By Bailey Twillman on August, 14 2025
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Bailey Twillman

So, you’re ready to buy a new home – but there’s one catch: you need to sell your current house first. Whether you're relying on the equity in your home to help fund your next purchase or simply can’t carry two mortgages, this is a common situation many homeowners face. So, how does it all work?

Step 1: Understand Your Equity Position

First, it’s important to know how much equity you have in your current home. This is the difference between what your home is worth and what you still owe on your mortgage. Many people use this equity toward the down payment on their next home. Your real estate agent or loan officer can help you estimate this.

Step 2: Talk to a Loan Officer Early

Before you list your home or start house hunting, meet with a Ruoff Mortgage loan officer. They’ll walk you through what you can afford, how much you’ll need for a down payment, and what kind of financing options are available, especially if you're planning to buy shortly after selling.

Step 3: Prepare Your Current Home for Sale

Start getting your house market-ready. That includes decluttering, making small repairs, and working with a trusted real estate agent to price it competitively. A faster sale helps make your transition to the next home smoother.

Step 4: Explore Contingency Options

In a perfect world, you’d sell your current house and buy a new one on the same day. But real estate doesn’t always work that neatly. A few options include:

  • Sale Contingency: This happens when you make an offer on a new home that’s contingent on selling your current one. This protects you from being obligated to buy a new house if your current home doesn’t sell in time.
  • Rent-Back Agreement: After closing on your sale, you may negotiate with the buyer to stay in the home temporarily while you finalize your next purchase. 
  • Buy-Before-You-Sell Program: Ruoff and Calque have a partnership to provide strategic solutions for homeowners with two ‘buy-before-you-sell’ programs, The Trade-In Mortgage™ and the Contingency Buster. Ask your loan officer for more information on these programs.
Step 5: Time It Right (With Help)

Your real estate agent plays a key role in coordinating timelines, ideally aligning your sale and purchase so you’re not left without a place to live or stuck paying two mortgages. Good communication between your agent, loan officer, and title company helps things move smoothly.

Step 6: Close and Move

Once your current home sells and you’ve secured financing for your next one, it’s time to close and move in! This part may involve some juggling of dates and logistics, but with the right team, it’s totally manageable.

Selling your current home before buying a new one is a strategic move – and very doable with the right planning. Talk to your loan officer early, stay organized, and surround yourself with a great team of professionals to guide you through each step. At Ruoff Mortgage, we’re here to help you make your next move a confident one.

 

About Ruoff Mortgage

At Ruoff Mortgage, we understand that buying a home is one of life’s biggest moments – not just as a financial decision, but a personal one. For more than 41 years, we’ve proudly helped families turn their dreams into reality. From our roots in northeast Indiana to now serving homebuyers throughout the Midwest, our focus has stayed the same: delivering exceptional service rooted in care, speed, and community. With an average 15-day clear-to-close time, our team is here to make your journey to homeownership as smooth and stress-free as possible. When you're ready to take the next step, we’re here to walk with you, every step of the way.