I currently own a home and am looking to buy another. I will be buying the second home before I sell my current home and the seller of the second home refuses to do contingent offers so I will be buying the second before I sell my current. I can currently put around $30-50k of my savings into a down payment as is, but I should get around $250-$300k from the sale of my current home (after fees and paying back the rest of the mortgage).
I feel like the ideal scenario would be to put as much of that as possible into a down payment on the second house in order to reduce my overall loan amount and therefore reduce as much interest as possible but I admittedly don't really understand how the interest works that well.
I will be getting a VA loan so from what I understand the lender is not allowed to charge an early payment fee, is there some sort of fine print to this that I should be aware of?
I have some family that I could probably borrow some money from interest free which feels kind of wrong to me but I am pretty confident that I will be able to sell my current house quickly and pay them off quickly when I do. Would that even be worth it if I can just put all that money toward the principle as soon as I sell the house anyway?