5 ways your house can make you go broke
Wallet buster: 2 payments, 1 house
Two might be better than one, but not when you're talking about house payments.
Most people need to get the money out of the home they own before they can buy a new one, Pipkin says. Homeowners might consider selling their current home before closing on another, or at least timing the purchase and sale close together.
"They should think about that with the understanding that if their home doesn't sell, they will have two mortgages," Pipkin says.
You can include a clause in the purchase contract indicating that you can't close on the home until you have a buyer for the house you're selling. And you can speed up the sale of your home by dropping the price.
"If it's put at the right price, the likelihood that it will sell a lot faster is much better," Pipkin says.