Can I buy a new home before I sell my current Colorado Springs home?

Yes. Whether it makes sense depends on your goals, your risk tolerance, and whether you can qualify for and carry both homes for a while. The main risk is paying two housing costs if your current home takes longer to sell than you expect. The upside is real: once you've moved, the old house is empty, which makes it easier to clean, repair, and stage, and gives buyers a clean slate. I recommend talking with your lender first, then deciding.

What buying first gives you

The obvious benefit is one move instead of two. You don't need temporary housing, storage, or a rent-back after closing.

There's a second benefit that's easy to overlook. Once you've moved out, your current home is empty, and that helps the preparation step. The house gets cleared out, it's far easier to clean and make repairs, and it can be staged from scratch. Buyers see a clean slate, with no personal belongings competing for attention. That's a good moment to bring in the right professionals, such as cleaners, painters, and a stager, so the home is presented the way you want it. See how to prepare your home to sell.

What it costs you: carrying two homes

The trade-off is overlap. Until your current home sells, you're paying for both: two mortgage payments (or a mortgage plus a bridge loan), two sets of property taxes, insurance, utilities, and HOA dues if they apply. If the sale takes longer than planned, that overlap grows.

That's why the decision starts with your goals and your margin. If carrying both homes for a few months would strain your budget or your peace of mind, selling first, or making your purchase contingent on your sale, may fit better. See how to sell and buy at the same time for those options.

How lenders look at it

Qualifying with two payments

Lenders generally count the payment on your current home when you apply for the new loan, so your income has to support both. Under Fannie Mae's guidelines, a lender can leave the current home's payment out only when it's under contract and the buyer's financing contingencies have cleared. If you plan to rent the old home out instead of selling, ask your lender how expected rent can be counted; there are specific rules.

Funding the down payment

Without sale proceeds, the down payment has to come from somewhere else. Common sources include:

• Savings or investments.
• A home equity line of credit on your current home, which is generally easier to open before the home is listed for sale. Ask your lender about timing.
• A bridge loan, short-term financing secured by your current home's equity. Lenders still need to see that you can carry the new home, the current home, and the bridge loan.

If you're military or a veteran

Service members and veterans sometimes keep their current home as a rental and buy the next one with a VA loan, if they have remaining entitlement. See whether you can keep your home as a rental and use your VA benefit again.

Colorado Springs details to plan for

• Insuring a vacant home. Many homeowners policies treat a home that sits empty for an extended period differently. Before you move out, ask your insurance agent how long the home can be vacant under your policy, and whether you need a different policy or endorsement while it's for sale.
• Winter. If the house will sit empty through a Colorado Springs winter, keep the heat on, and have someone check on it regularly. Frozen pipes in an empty house are an expensive surprise.
• Utilities. Keep Colorado Springs Utilities service on at the old home through closing so it can be cleaned, shown, and inspected.
• Property taxes and the senior exemption. If you receive El Paso County's senior property tax exemption, moving your primary residence affects it. See what happens to your property taxes when you downsize.

A simple way to decide

• If you can comfortably carry both homes for several months, buying first lets you move once and sell an empty, well-prepared house.
• If you need your current home's equity for the down payment, look at a bridge loan or home equity line, or sell first.
• If carrying two homes would strain your budget, sell first or make your purchase contingent on your sale.
• If you're not sure, start with your goals and a conversation with your lender before you write an offer.

What could change the answer

• Your income and debt. Qualifying for two payments is the first hurdle.
• Your equity and cash. They decide how you fund the down payment without sale proceeds.
• How quickly homes are selling. A slower market means a longer, costlier overlap.
• Your plan for the old home. Selling, renting, or keeping it changes how lenders and insurers treat it.
• A deadline. PCS orders or a senior living move-in date can make buying first the more practical path.

When to talk with a professional

A lender can tell you whether you qualify to carry both homes and what bridge or home equity options exist. An insurance agent can explain coverage for a vacant home. A CPA can help if renting the old home or the timing of the sale affects your taxes. A real estate professional can help you plan the timing and prepare the current home to sell.

Sources

• Fannie Mae Selling Guide, B3-6-06, Qualifying Impact of Other Real Estate Owned: https://selling-guide.fanniemae.com/sel/b3-6-06/qualifying-impact-other-real-estate-owned
• Fannie Mae Selling Guide, B3-4.3-14, Bridge/Swing Loans: https://selling-guide.fanniemae.com/sel/b3-4.3-14/bridgeswing-loans
• Colorado Springs Utilities: https://www.csu.org