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What financial readiness means when making a non-contingent offer
Financial readiness means being able to clearly and quickly show that you can close without delays or surprises. Before moving forward, make sure these pieces are in place:
- Secure a full mortgage pre-approval: A lender-reviewed pre-approval (not a pre-qualification) shows sellers you’re highly likely to secure financing. Most letters are valid for 60 to 90 days.
- Provide proof of funds: Be ready to document cash for your down payment and closing costs using recent bank statements, brokerage statements, or a letter from your financial institution.
- Understand earnest money risk: Earnest money typically runs 1% to 3% of the purchase price and may be higher in competitive markets. With a non-contingent offer, that deposit is more vulnerable if the deal falls through.
- Consider a pre-offer inspection: Inspecting the home before submitting your offer can reduce the risk of waiving an inspection contingency and help you move forward with clearer expectations.
- Maintain a financial buffer: Extra savings can help cover surprise repairs, closing adjustments, or short-term overlap costs if you briefly carry two homes.
How HomeLight’s Buy Before You Sell Program empowers you to make a strong, non-contingent offer
HomeLight’s Buy Before You Sell program provides a modern and secure solution for buyers who need to purchase a new home before selling their current one, allowing you to make a non-contingent offer with confidence.
This program seamlessly unlocks the equity in your current home, streamlining the entire process so that you can make a non-contingent offer on your new home and only move once.
Here’s how HomeLight Buy Before You Sell works:
This financial backing eliminates the need for a home sale contingency, positioning you as a strong and competitive buyer.
Once you’ve moved out, your previous home can be prepared for the market without the disruption of daily life. A vacant home is easier to stage and show, which can lead to a quicker sale at a potentially higher price. This transforms a traditionally risky non-contingent offer into a secure and strategic move.
In addition, you’ll have more peace of mind with HomeLight’s Home Sale Guarantee, a backup cash offer for your old house, providing a safety net if it doesn’t sell quickly on the open market.
As you can see, HomeLight’s Buy Before You Sell program is engineered to remove many of the risks and uncertainties that come with juggling two real estate transactions at once.
Improve your plans with a Home Affordability Calculator
To help you gain some perspective on your next move, try our Home Affordability Calculator below. Consider how much you might be able to reduce the monthly mortgage payment on your new house if you could increase the down payment with funds from your current home’s equity.
The toggle feature lets you calculate by income or by payment. If you click the “Advanced Options” link, you can fine-tune the details, like your property taxes, PMI, or insurance costs. The calculator will automatically include some typical expenses to help you see how much house you can afford.
