One of the biggest obstacles families face when moving up is timing—selling their current home while trying to compete for the next one. Lately, I have been advising my clients using the Buy First, Sell After strategy, a thoughtful tactic from one of my trusted lenders, Adam Liebross at City National Bank.
Why This Strategy Works for Buyers & Families
- Clients can buy their next home first, so that they know where they are going to be moving.
- No temporary housing, no double moves, no “fire sale”
- Stronger, cleaner offers (not contingent offers)
- Families can move on their timeline—not the market’s
How City National Bank’s Program Helps
- Up to $3,000,000 loan amount
- 15% down payment with no Mortgage Insurance
- No bridge loan needed
Qualifying Advantages
The lender can exclude or offset the departing residence’s debt from the debt-to-income calculations if:
- The home is listed for sale or there is a signed listing agreement or
- The home is rented with a signed lease agreement
Additional Items:
- City National Bank allows gift funds to be utilized for the down payment and reserves
- After selling the departing residence, the client can pay down the mortgage with no prepayment penalty. Also, they offer a one-time recast for $500 to re-amortize the payments off the lower loan balance.
Real-World Examples
New Purchase
- Purchase Price: $2,500,000
- Down Payment (15%): $375,000
- Loan Amount: $2,125,000
- Loan Program: 7/6 ARM at 5.57% (5.92% APR)
- Initial Monthly Payment (30-year amortization): ≈ $12,159
After the Purchase, With the Sale of Departing Residence
- Sale Price: $1,800,000
- Existing Mortgage Payoff: $1,000,000
- Selling Costs (6%): $108,000
- Net Sale Proceeds: ≈ $692,000
Proceeds Pay Down the Mortgage and Recast the Payments
- New Loan Balance after Paydown: ≈ $1,433,000
- Recast Monthly Payment: ≈ $8,199
- Monthly Savings: ≈ $3,960
That’s nearly $4,000 per month in reduced payments—without ever needing a bridge loan or rushing the sale.
If you want to move but want to know where you are moving first, I can often find you homes before they go on the market so you aren’t competing with multiple offers. Contact me if you are thinking of moving. Adam Liebross can also be reached by email at Adam.Liebross@cnb.com.