Move-Up Guide: Selling and Buying Without the Stress
Buy first or sell first — equity, timing, and when to keep the old home as a rental. A free, plain-English guide from Paul Francisco, with checklists, a Texas page and official resources.
Let’s make this simple.
Your needs changed. Selling and buying together can feel like juggling. We’ll map both paths — including when keeping the current home as a rental is smart, and when it’s a stretch.
~Paul
Selling and Buying Without the Stress
Paul Francisco · NMLS #1878399
Worried about it? Going to love it?
What you might be worried about
- Two mortgages
- Gap housing
- Selling too low
- Timing both closings
What you’re going to love
- Room to grow
- Using equity you’ve built
- A home for this season
- A written timeline
Buy first, sell first, or keep it as a rental?
You’re moving equity from one home to the next — and equity only becomes cash when you sell or borrow. Selling has costs. Hold a long view on the home you’ll keep.
When moving up is NOT the right move yet
- Equity + income can’t support the gap (two payments or bridge costs).
- You’re stretching into a payment that only works with perfect overtime.
- Keeping the old home as a rental without reserves, rents that cover costs, or desire to be a landlord.
- Short expected stay in the new home (~under 3–5 years) with a need to sell soon after.
When it CAN make sense
- Clear equity estimate (sale price − payoff − selling costs).
- Pre-approval covers buy-first and sell-first scenarios.
- Contingent offer, bridge, or leaseback chosen on purpose — not by accident.
- If keeping as rental: rents, management, vacancy reserves, and landlord willingness are honest.
Worked example (example numbers only)
Example only. Expect net equity ~$90,000 after selling costs; new payment comfortable; can qualify carrying both briefly → buy-first with backup listing plan can work.
Thin equity, can’t carry two payments, won’t rent the old home → sell first or wait.
Questions to ask yourself
- Buy first or sell first — which risk can I sleep with?
- What’s my real net equity after selling costs?
- If I keep the old home, do I want to be a landlord?
- How long will I hold the new home?
Questions to ask your loan officer
- Can I qualify carrying two mortgages?
- Bridge options vs contingent offer — tradeoffs?
- How do you treat rental income on the old home?
- Cash-to-close on the new purchase?
- What would you do in my shoes?
Every step, in the order it happens
- Equity checkNet sheet with your agent.
- Pre-approval both waysBuy-first and sell-first.
- List / offer strategyContingent, bridge, or leaseback on purpose.
- Dual timeline → both closingsMovers once if you can.
Your questions, answered
Buy first or sell first?
Depends on equity, risk comfort, and qualifications.
How much equity can I use?
Sale price − payoff − selling costs.
Two mortgages?
Sometimes — income and debts decide.
Bridge vs contingent?
Bridge uses equity before sale; contingent ties purchase to sale.
Leaseback?
Sell then rent back briefly to move once.
Keep as rental?
Only with honest rents, reserves, and landlord willingness.
Texas homestead?
Doesn’t move with you — refile on the new home.
Checklists and worksheets you’ll actually use
Timeline
- Equity estimate
- Pre-approval both ways
- Listing date
- Offer on new home
- Both closings
- Movers
Equity worksheet
- Expected sale price
- Loan payoff
- Selling costs
- Estimated net
Think long term
- Old home as rental?
- Downsizing later
- Retirement
- 10-year plan
No one can promise what a home will be worth later, so we plan for a few different paths.
We earn your trust before we ever ask for documents. After your consultation with Paul, you will upload these securely through Arive, our loan operating system. Please do not send documents by email or through a web form.
If you’re buying in Texas
- Homestead doesn’t move with you: remove from old, file on new.
- Disabled veterans: Texas offers partial exemptions by disability rating, and a total homestead exemption for 100% or individual unemployability ratings. Check the Comptroller’s FAQ.
- HOA, MUD and PID: many newer Texas neighborhoods have these. Sellers must give you notice, so read it and ask Paul how it affects your payment.
- Insurance: hail and wind matter here, and flood coverage is a separate policy. Check the FEMA flood map for any home you’re considering.
Plain-English words used in this guide
Equity
Value minus what you owe.
Net sheet
Estimate of cash after selling costs and payoff.
Contingent offer
Purchase depends on selling your current home.
Bridge loan
Short-term financing using equity before you sell.
Leaseback
Sell then rent the home back for a short time.
Closing costs
Fees to close.
Appraisal
Opinion of value.
Pre-approval
Lender reviewed your documents.
DTI
Debts vs income.
Title
Ownership protection via title work.
Official government resources
We only link to official government sites here, so you know the information is straight from the source.
Selling and buying
- CFPB: Buying a househttps://www.consumerfinance.gov/owning-a-home/
- IRS Pub 523: Selling your homehttps://www.irs.gov/publications/p523
- HUD: Buying a homehttps://www.hud.gov/topics/buying_a_home
Owning a home
- IRS Pub 530: Tax info for homeownershttps://www.irs.gov/publications/p530
- FEMA FloodSmart: Flood insurancehttps://www.floodsmart.gov/
Texas
- Texas Comptroller: Property tax exemptionshttps://comptroller.texas.gov/taxes/property-tax/exemptions/
- Denton CAD: Homestead exemptionshttps://www.dentoncad.com/homestead-exemptions
Want Paul to walk you through it?
Call or text me anytime. No pressure, just straight answers about your options. Thank you so much! 💙
Paul Francisco, Mortgage Advisor · NMLS #1878399 · Go Rascal Inc., NMLS #2072896