Thank you to Crystal Brady for discussing this topic with us! Below you will find a video and the written text with it!
If you are currently renting, it can be difficult to time your moving process in a newly purchased home just right. But, with these guides below, you can avoid double payments and being homeless.
Check it out!
When Should You Break Your Lease When Moving?
Do Not Expect It To Be Perfect
Buyers always want to time closing on their new home with the end of their lease and that is often an unrealistic expectation.
We know it only takes approx 30-45 days to close on a home, but we have no idea if it will take you 1 week or 3 months to find and successfully negotiate on the house you will buy.
So, timing it just right rarely happens.
Plan For Alternatives
Do you have the option to go month to month? If so, this will enable you to start the search when you get close to the expiration of your lease.
Also, if you find something immediately, then you will not have to extend it, but if it takes a month or two longer than you thought, then you can go month to month to avoid double payments.
Moreover, check your lease and see what the options for early termination and fees are to break it.
In Florida, the maximum allowable fee for breaking a lease early is 2 month’s rent.
When Is My First Mortgage Payment Due?
Keep in mind your first mortgage payment is delayed so, this may help compensate for the fee to break or if you have to pay another month on your lease after you buy.
Your mortgage payment skips the month after you closed on your home.
As an example: you close on a house June 5th (or anytime in the whole month of June) your first mortgage payment would be due Aug 1.
The Best Tip On Timing Your Move
Start the process early on with an experienced agent.
This will help you go through the pre-approval process, find what your needs are, and ultimately be prepared.
Also, an experienced agent will be able to guide you along the process.
Delaying the process simply runs the risk of finding a home too late which could lead to a time period where you are homeless. However, this may not be an issue for you if you can go month to month or, have family/friends you can bunk with.
Finding a home when you are in a lease can be a stressful process. But it does not have to be.
Use these tips, start the process early, and connect with an experienced agent to avoid double payments and being homeless.
Have a question? Drop a comment below!
You may also want to check out our other articles on home buying.