How to Buy Before You Sell in 2026 (Without Destroying Your Approval)

One of the most common questions I get:

“Do I have to sell my current home before I buy?”

Not necessarily.

Buying before selling can actually put you in a stronger negotiating position — if it’s structured properly.

The Fear: Two Mortgage Payments

The concern is simple:

“How do I qualify if I’m carrying both homes?”

The answer depends on structure.

There are three primary paths:

1. Offset the departing residence with rental income

2. Qualify carrying both with sufficient DTI and reserves

3. Use equity strategically (bridge-style structures or large down payment)

Each scenario is different.

Option 1: Converting Current Home to Rental

If you plan to keep your current home as an investment property, we may be able to use projected rental income to offset the existing mortgage.

Typical structure requires:

• Lease agreement

• Security deposit proof

• Appraisal with market rent schedule

• Reserve requirements

If structured correctly, your old payment may not fully count against your DTI.

Option 2: Carry Both Temporarily

If income and reserves are strong enough, you may qualify carrying both payments temporarily.

This requires:

• Conservative DTI positioning

• Adequate liquid reserves

• Clean credit profile

This is common for high-income or equity-heavy homeowners.

Option 3: Equity Strategy

Sometimes we restructure the down payment using:

• Proceeds from sale

• HELOC strategies

• Refinance prior to listing

• Large equity injection

The goal is to reduce DTI pressure before underwriting reviews the file.

Common Mistake

Waiting until you’re under contract to “see if it works.”

We run the numbers first.

That way you know:

• Maximum purchase comfort level

• Reserve requirements

• Exit timeline expectations

• Listing coordination strategy

Clarity eliminates stress.

2026 Market Reality

In a slower inventory environment, buying before selling can give you flexibility.

You avoid:

• Contingency pressure

• Rushed offers

• Settlement timing panic

But only if your financing is clean.

Bottom Line

Buying before selling is not risky.

Unstructured buying is.

If you want to see what your numbers allow:

Apply here: CLICK HERE