You love the idea of moving once, not twice. In Pinecrest, the right home can appear fast, and you may want to act before your current place sells. Buying first can reduce stress and keep your life on schedule, but it takes a solid plan. In this guide, you’ll learn your financing options, Pinecrest-specific details to consider, and a step-by-step path to make a smooth move. Let’s dive in.
Why buy before you sell
Buying first can help you avoid a double move and temporary housing. It also gives you time to prepare your current home for market without living through showings. If you spot a home that fits your lifestyle, you can move quickly with a strong offer. Every market shifts, so your approach should match your timing, equity, and comfort with risk.
Your financing options to buy first
Bridge loan
A bridge loan is short-term financing that taps your current home’s equity so you can buy the next one. Lenders review your credit, debt-to-income ratio, and combined loan-to-value. Many offer interest-only payments with repayment when your current home sells.
- Pros: Lets you write a more competitive, non-contingent offer and avoid a double move.
- Cons: Higher rates and fees than a standard mortgage, plus a short payoff window if your sale is delayed.
- Best for: Owners with strong equity who want speed and can tolerate short-term costs.
HELOC or home equity loan
A HELOC (line of credit) or a fixed home equity loan is secured by your current home. You use the funds for the down payment on your next purchase. Some lenders want the line open and seasoned before you draw for a purchase.
- Pros: Often lower cost and flexible access to funds.
- Cons: You’re securing the new move with your current home and may carry two payments if your sale takes longer. Variable rates can add payment risk.
- Best for: Owners with meaningful equity who can handle overlap if needed.
Cash-out refinance
You refinance your current mortgage for a higher amount and use the cash for your new down payment. This can be simpler if you prefer a single-lender process.
- Pros: Converts equity to cash, often at a lower cost than a bridge loan.
- Cons: Takes time for appraisal and underwriting, adds closing costs, and may increase your current monthly payment.
- Best for: Owners comfortable resetting their existing loan terms to unlock a larger lump sum.
Sale-contingent offer
You make an offer to buy that is contingent on selling your current home by a set date. The contract spells out the timeline and marketing plan.
- Pros: Avoids interim financing and extra carrying costs.
- Cons: Less competitive if multiple buyers are in play. You could lose the home to a non-contingent offer.
- Best for: Situations where the seller is open to contingencies or the pace is slower.
Leaseback or rent-back
You close on your sale and then rent the home back for a short period while you finalize and move into your next property. Terms should cover rent, deposits, access, and insurance.
- Pros: Lets you avoid a double move and gives you control over move-out timing.
- Cons: Not all buyers or lenders will allow it, and it requires clear written terms coordinated with the title company.
- Best for: Sellers who have a buyer willing to accommodate a defined post-closing stay.
Portfolio, jumbo, or asset-based loans
Portfolio lenders may underwrite based on assets or more flexible criteria. Jumbo financing is common at Pinecrest price points, and these products can help you buy first.
- Pros: Flexibility for high-net-worth or non-traditional income profiles.
- Cons: Often higher rates and fees with varied underwriting standards.
- Best for: Buyers who need custom terms or larger loan amounts.
Qualifying and timing: what lenders check
Lenders evaluate your ability to carry two properties, even if only for a short time. Expect them to count all proposed mortgage payments in your debt-to-income ratio and to require reserves (months of payments) depending on loan type. They also verify the source of your down payment and may require funds to be seasoned. If you plan to pull from a HELOC, confirm any seasoning rules first.
Insurance and inspections take on extra importance. In South Florida, flood insurance quotes and wind policies can affect your budget and timing. Start those conversations as soon as you identify a property. Title companies in Florida handle payoff demands, documentary stamps, and recording; work with them early to align funding and closing dates.
Pinecrest-specific planning points
- Homestead exemption: Many Pinecrest owners claim homestead on their primary residence. If you plan to change your primary home, confirm timing, filing, and property tax implications with a tax advisor or the Miami-Dade Property Appraiser.
- Flood and hurricane risk: Check flood zone designations early. Flood and wind insurance availability and premiums can impact affordability and lender approval. Get preliminary quotes as soon as you shortlist a property.
- Florida closing practice: Expect title-company closings with coordinated payoffs and recording. Your closing agent will handle payoffs on your current mortgage and prorate taxes based on the closing date.
- Leaseback details: If you need a post-close stay, document rent, deposits, maintenance, insurance, and access in writing. Lenders may verify occupancy timelines for the buyer.
- Seasonal timing: Build buffer for hurricane season or potential market slowdowns that could shift closing dates.
Quick comparison: choose your path
Step-by-step planning checklist
Pre-launch (4 to 8+ weeks before offers)
- Gather documents: pay stubs, tax returns, bank and retirement statements, existing mortgage info, and proof of assets and equity.
- Request a current market analysis for your home and, if helpful for underwriting, consider a valuation discussion with your lender.
- Speak with multiple lenders about bridge, HELOC, cash-out, jumbo, or portfolio options. Ask about CLTV limits, reserves, and seasoning rules.
- Get preapproval for your chosen strategy and verify proof-of-funds requirements.
- Pull payoff information for your current mortgage and check for any subordinate liens or HOA balances.
- Start insurance planning and review flood zone data for areas you are targeting.
Offer stage
- Choose your path: non-contingent with interim financing, contingent, or contingent with a kick-out clause.
- If you want a leaseback after you sell, prepare draft terms for rent, deposit, insurance, access, and maintenance.
- Coordinate desired closing dates with your title company and lender to allow for funding and recording.
Closing and immediate post-closing
- Verify wire instructions with the title company by phone to avoid fraud.
- Bind homeowner, flood, and wind policies on the correct dates.
- Confirm payoff procedures for your current mortgage and tax proration details.
- If you will carry two mortgages briefly, set up automatic payments or hold reserves to avoid missed payments.
Contingencies and exit planning
- If your sale slows, identify backup options: request a bridge extension if allowed, convert financing, adjust pricing, or update your marketing plan.
- Keep a rolling timeline and build buffer for seasonal weather or market shifts.
Questions to ask your team
- Lenders: What buy-first products do you offer? What are the CLTV, DTI, reserve, and seasoning requirements? What is your timeline from application to funding?
- Real estate agent: In the price range you’re targeting, how competitive are non-contingent versus contingent offers? Would a leaseback help your sale plan? What is the marketing plan if your home is listed while you move?
- Title company: Can you coordinate simultaneous closings? How will you handle payoff demands, tax prorations, and leaseback escrow if needed?
Make your move with confidence
You can buy your next Pinecrest home before you sell with less stress when you prepare your financing, timing, and insurance early. The right plan helps you write a stronger offer and move once. If you want a calm, step-by-step approach tailored to Pinecrest and nearby neighborhoods, let’s talk. Schedule your South Miami neighborhood consultation with Eric Firestone.
FAQs
How does buying before selling work in Pinecrest?
- You secure interim funds (bridge, HELOC, or refinance), purchase the new home, then sell your current home and use proceeds to repay the short-term financing.
What financing is most common for Pinecrest move-up buyers?
- Many consider bridge loans, HELOCs, or jumbo/portfolio loans, depending on equity, income documentation, and comfort with carrying two payments temporarily.
Will a lender count both mortgages when I buy first?
- Yes. Underwriters typically count all proposed payments for debt-to-income and may require several months of reserves based on the loan type.
Can I make a sale-contingent offer in a competitive area?
- You can, but contingent offers often rank lower when multiple bids are present. Consider stronger terms or interim financing if you need to compete.
How much equity do I need for a bridge loan or HELOC?
- Requirements vary by lender and product, but meaningful equity is key. Speak with lenders to understand CLTV limits and how much you can access.
Does Florida’s homestead exemption stop me from buying first?
- No. Homestead affects property tax benefits and residency. Review timing and filing with a tax advisor or the local property appraiser when changing your primary residence.
How should I handle flood and wind insurance when buying first?
- Start quotes early. Flood zone designations and wind coverage can affect your budget and lender approval, so confirm availability and premiums before you commit.
What if my sale falls through while I have a bridge loan?
- You still must repay the bridge. Options may include extending the loan, converting to longer-term financing, adjusting your listing strategy, or using other assets to reduce the balance.
Can I use a leaseback after I sell my Pinecrest home?
- Yes, if the buyer and lender agree. Put terms in writing and coordinate rent and deposits with the title company for a clear, short post-closing stay.
