Thinking about moving up in McLean but worried about how to buy your next home without selling first? You’re not alone. In a high-value, low-inventory market, timing matters and the stakes feel higher. This guide lays out practical ways to secure your next home first, how financing and contracts work in Northern Virginia, and the exact steps to keep cash flow and stress in check. Let’s dive in.
Why buy before you sell
McLean sits within one of the region’s most competitive corridors, with a concentration of larger single-family homes, proximity to Tysons, and access to major commuter routes. Inventory can be tight, and mortgage-rate swings influence how competitive offers need to be. In many cases, sellers in McLean prefer clean offers without sale contingencies.
Buying before you sell can help you move on your timeline, avoid rushed decisions, and stage your current home beautifully once it’s vacant. The tradeoff is temporary duplication of costs and careful coordination among your lender, settlement agent, and agent team.
Your financing options
Bridge loan
A bridge loan is a short-term loan that taps equity in your current home to fund the down payment or monthly payments on your next purchase.
- Pros: Lets you write a strong, non-contingent offer and reduces pressure to discount your current home.
- Cons: Higher interest rates and fees than standard mortgages; short repayment windows, often 6 to 12 months.
- What to know: You’ll need strong credit, ample equity, and a lender that offers bridge loans in the DC metro. Lenders often want proof your current home is marketable.
HELOC or home-equity loan
A home equity line of credit or fixed home-equity loan can supply cash for your down payment or carrying costs.
- Pros: Often lower cost than a bridge loan; flexible use and interest-only draws for HELOCs.
- Cons: Increases debt on your current home and may restrict options if you sell later than planned.
- What to know: Confirm approval and draw timing early so funds are available when you need them for your purchase.
Piggyback or jumbo combinations
You can layer financing, such as a first mortgage plus a second mortgage, to reduce the cash you need at closing.
- Pros: Minimizes the need to pull large cash from your current home before it sells, which is useful in a luxury-leaning market.
- Cons: More complex underwriting and potentially higher total monthly payments.
- What to know: Qualification standards are stricter when you temporarily carry two loans.
Sale contingency
You can make your purchase contingent on selling your current home within a set period.
- Pros: Keeps you from carrying two mortgages and reduces cash needs.
- Cons: In competitive segments of McLean, sellers often reject sale contingencies or allow only short timelines.
- What to know: If accepted, you may need to offer stronger pricing or other concessions to offset the contingency.
Possession and rent-back tools
Post-settlement occupancy and rent-back agreements can smooth timing.
- Pros: You can negotiate a closing date and short rent-back to line up your move and sale prep.
- Cons: These are negotiated case by case and may not solve larger financing gaps.
- What to know: Terms must be written into the contract and coordinated with the settlement agent.
Trade-in and guaranteed-sale programs
Some companies and programs offer quick purchase options for your current home so you can buy with more certainty.
- Pros: Speed and predictability.
- Cons: Offers are usually below market value after fees and may not be a fit for higher-end McLean properties.
- What to know: Verify availability, fees, and timelines in writing.
Temporary housing
Renting short-term or staying with family gives you breathing room if timing doesn’t align.
- Pros: Removes pressure to accept a discount on your sale and simplifies staging.
- Cons: Moving twice and paying for storage can feel disruptive.
- What to know: Build a plan for storage, mail forwarding, and utilities.
Cash or large down payment
If you have cash or can liquidate investments, you can compete without financing contingencies.
- Pros: Maximum leverage in negotiations and faster closings.
- Cons: Not feasible for most buyers; liquidation may have tax implications.
- What to know: Discuss liquidity and timing with your financial advisor.
Financing and contracts in Northern Virginia
Underwriting expectations
When you carry two homes, lenders look closely at debt-to-income ratios, reserves, and credit. Expect requests for documentation of income and assets, plus confirmation that your current home is marketable if you’re using a bridge loan. Plan for stricter reserve requirements than a standard purchase.
Key contingencies to consider
Your purchase contract can include financing, inspection, appraisal, and sale-of-home contingencies. In competitive settings, sellers may ask you to remove or shorten sale contingencies. Appraisal and inspection contingencies remain important checks, especially when using short-term financing or tapping equity.
Simultaneous closings and logistics
It’s common to target same-day or closely sequenced closings for your purchase and sale. Title companies and settlement agents coordinate payoffs so funds flow correctly. If you do not close both on the same day, plan for possession dates, utility transfers, and HOA or tax prorations.
Taxes and ownership
If the home you’re selling is your primary residence, you may be eligible for a capital gains exclusion if you meet the ownership and use tests. Property taxes are prorated at closing, and your new home will be assessed by Fairfax County post-purchase. Always consult your tax professional for specifics.
Insurance and carrying costs
Lenders will require homeowners insurance on the new property at closing. If you own two homes temporarily, budget for mortgage payments, taxes, insurance, utilities, HOA fees, and maintenance on both.
VA and other programs
Eligible VA buyers may be able to purchase with no down payment, which can help when buying before selling. You still need to meet underwriting standards for reserves and debt ratios, and you must plan for occupancy requirements.
A smart timeline
- Weeks -6 to -2: Meet a lender for pre-approval. Request quotes for bridge loans or HELOCs. Ask your agent for a current market analysis and pricing strategy for your existing home.
- Weeks -2 to 0: Tour target homes and write offers. If using a bridge or HELOC, you can write non-contingent with informed risk. Negotiate closing dates and any rent-back needs.
- Week 0: Start underwriting on your purchase loan. Schedule inspections and appraisal. Line up movers and storage.
- Weeks 0 to +4: Close on your purchase. If timing allows, list your current home after you move out to maximize presentation. Coordinate with your settlement agent for payoff of any interim financing.
- Weeks +1 to +12: Market your current home, review offers, and close the sale. Use proceeds to pay off bridge or HELOC balances.
Costs to budget
- Duplicate housing: Mortgage payments, property taxes, insurance, utilities, HOA, yard care, and routine maintenance on both homes.
- Financing: Bridge-loan origination, HELOC fees, application and appraisal costs.
- Moving and storage: Movers, storage unit, short-term lodging if needed.
- Closing: Settlement fees, title insurance, and standard closing costs on both transactions.
- Contingency buffer: Several months of reserves in case your sale takes longer than expected.
Your step-by-step checklist
- Get pre-approved and compare bridge and HELOC quotes in writing.
- Request a detailed market analysis for your current home. Discuss pricing, staging, and timing.
- Gather documents: Income statements, tax returns, bank and investment statements, and proof of reserves.
- Decide your offer strategy: Non-contingent with bridge/HELOC, or contingent with clear timelines.
- Include inspection and appraisal protections appropriate to the home.
- Plan logistics: Movers, storage, utility transfers, and temporary housing if needed.
- Consult your CPA on potential tax outcomes and any implications of liquidating investments.
- Coordinate closely with your settlement agent to time payoffs and funding.
Common pitfalls to avoid
- Underestimating carrying costs and reserve needs when owning two properties.
- Assuming a sale contingency will be accepted in a tight segment of McLean.
- Not confirming HELOC draw timing or bridge-loan maturity dates.
- Overlooking appraisal risk and removing protections without a backup plan.
- Poor coordination on closing dates, leading to rushed moves or double payments.
Bringing it all together
Buying before you sell in McLean is doable with the right plan. Start with financing clarity, choose an offer strategy that fits the segment you’re targeting, and line up logistics early. With thoughtful timing, you can secure the home you want, present your current home at its best, and protect your cash flow along the way.
If you’d like a tailored plan for your situation, market analysis for your McLean property, or a coordinated timeline from offer to closing, connect with Kristen Jones Real Estate. We’ll map your financing options, prepare your home to shine, and guide every step with white-glove care.
FAQs
Will a seller accept a sale contingency in McLean?
- It depends on the segment and market conditions. In lower-inventory, competitive situations, sellers often prefer non-contingent offers. If a home has been on the market longer or inventory is higher, a short, clear contingency may be considered.
How much equity do I need for a bridge loan?
- Many lenders look for substantial equity, often 20 to 30 percent or more, and will verify your ability to carry two mortgages. Exact requirements vary by lender and your overall profile.
Can I use a HELOC for my down payment right away?
- Draw timing and rules vary by lender. Confirm approval, draw availability, and any waiting periods before you rely on HELOC funds for your purchase.
What if my current home doesn’t sell after I buy?
- You’re responsible for both sets of housing costs until the sale closes. If you have a bridge loan, you’ll need to repay or refinance it by the maturity date, so build a conservative timeline and cash buffer.
Can I close on both homes the same day in Virginia?
- Yes. Simultaneous or closely sequenced closings are common. Your settlement agent coordinates payoffs and funding so the transactions flow correctly, but you should still plan backup dates in case of delays.
