You currently own your home, but your family has grown or perhaps you’re retiring and want to down size. Everyone has a different reason for buying their next home.
You have purchased a home before and have a good idea of what to expect when making your purchase. However, over the last 4 years there have been a lot of changes when it comes to buying your home. For the most part, changes in mortgage financing have been a good thing for consumers. The best part is that we are getting folks, just like you, into their home every day.
Here are 9 major considerations before you begin searching for your new home:
1. How much do think your current home is worth if you put it on the market to sell today?
Compare your house to others nearby to get comparable values. The purchase market call these comparisons, “comparables.”
2. How much money will you receive after the sale of your current home?
This is the amount of money you will net from the sale of your house, after you payoff your current mortgage, transfer taxes, realtor fees and other closing expenses.
3. How much time do you think it will take to sell your house?
Ask yourself, are homes in your area selling fast or slow? This is a good yardstick to determine your estimated transition to a new home.
4. Are you comfortable shopping for another house, without knowing you have a buyer for your current house?
Some folks are comfortable shopping for a new home without knowing whether or not their current house will sell in time and not knowing how much they will receive from their current house sale. Yet, others are not comfortable to move forward until their current house is definitely under a sales contract. Which are you?
5. Does your income justify the new mortgage payment?
More importantly, does your current income support a new higher mortgage payment? Don’t get overwhelmed with a large payment that has you regretting your decision to buy another home.
6. How is your credit?
Have you made all your past mortgage payments to date on time? Are you paying your other revolving debt on time? Are you truly comfortable with the new payment.
7. Do you have additional assets available to put down toward the purchase of your new home?
Do you have money saved? You have other liquid assets to put down on the new house and still have funds for closing?
8. Is your current job stable?
No one knows for sure how stable their job is in today’s economy, but you better than anyone, will have to answer this question.
9. Will the move to a new home impact your life?
Purchasing a new home should be considered one that will hopefully improve your quality of life. Be careful not to stretch your budget to the maximum when considering your new home purchase. Doing a household budget will help give you good direction in determining your overall ideal number for a new mortgage payment.
Purchasing a new home is considered one of the top 3 changes that will occur in your lifetime. On a positive note, the mortgage process can go very smoothly if you work with a lender who knows what they are doing.
Congratulations! If you have decided to purchase another home. Our experiences has shown that no two persons are exactly the same in their needs and wants, especially when choosing to buy a new home.
Take advantage of our free 30 minute consultation to determine what you can afford, what terms are best, and which program works for your needs. More importantly, you want to make sure you have the proper timeline and steps in between selling and buying to make your home purchase as smooth as possible.