As your career progresses, your family grows, and your priorities shift, your housing needs will inevitably change as well. Perhaps your family has grown and you need more space and amenities to make everyone comfortable, or maybe the kids have grown and your empty nest is simply too large for your needs. Regardless of whether you are looking to upgrade or downsize, when the time arrives to buy your next home, the task can seem enormous.
Where to Start
Enlisting professionals that you trust and have confidence in for these transactions is critical for your peace of mind and to ensure a smooth buying/selling process. A real estate expert who has experience with managing two transactions (possibly at the same time) is needed. An experienced mortgage professional who can help you choose the best loan structure for your situation is also essential. When choosing a mortgage professional, there are many options available to you, and we encourage you to choose a local lender. (Find out why you should choose a local lender here.)
Here are some great tips for preparing for the purchase of your next home:
- Select an experienced real estate agent to manage both transactions.
- Get pre-approved for your next mortgage. Talk with a mortgage professional about how much you will qualify for if you need to keep your current property until after you settle on the new home. Pre-approval is a written statement from a lender qualifying for you for a specific loan amount by verifying your income, assets, and the valuation of your home. Pre-approval will put you in a better negotiating position when house-hunting.
- Get your budget together for closing costs on the new home, and reserve funds for the transition period.
- Familiarize yourself with the available housing inventory and the type of market in your area. Is it a buyer’s market or a seller’s market?
- Prepare your current home so that it is ready for marketing.
- Price your current home right!
- Anticipate the possibility of renting back your home between the sale of your current home and the purchase of your new home.
- Be prepared to possibly own two houses at once for a brief period of time.
- Be open to “creative financing.” If you will be buying your new home before selling your current residence, line up your down payment and closings costs and check out borrowing against your current home’s equity, borrowing from your 401K, or taking advantage of a creative loan program.
These are just some of the ways to get started on your next homebuying journey. The more prepared you are, the more smoothly the transactions will go.
Looking for more information on the home selling process? Check out my other blogs or contact me.
Topics: Home Buying Tips, move up buyer
