You have decided that it is time to “Move-up”. Whether it be that you need or desire a larger home, or you would like more amenities, or your commute time needs to be adjusted, there are decisions that affect your current home. In addition to putting your home on the market and selling it, you may opt for keeping it and renting it out. If you decide to sell then some or all of the equity that has built up can be utilized as a down payment on your new home. If you decide to rent your present home while moving to a new home you need to assess your financial situation. You need to ensure that probable rental income would cover the cost of the present mortgage as well as maintenance costs and the expenses of a new home.
There is also the probability that a well qualified buyer will appear whose time table for closing does not coincide with what you had in mind. Are you comfortable with renting temporary housing while you wait for a new home to be built or while you search for an existing home. Remember that you may also incur the cost of storage of some of your household goods for a period of time
Step 2 Call Us to Establish the Value of Your Present Home:
Once you have decided that it is time to “move-up”, you need to determine the value of your present home. Making decisions on what you would like in a new home could be dependent on the amount of equity that has accrued in your present home. We have the tools at hand to determine what the probable value is for your present home.
There are many more indicators that determine this other than “the house across the street sold for $xxx,xxx.”. You need a realistic approach as to what is the best price to market your present home, what you can realistically expect for a marketing time and what the competition is from other homes currently on the market.
Step 3 Call Lender to Determine Availability of Funds:
“Run the numbers.” Before contacting a loan officer to determine your comfort level for mortgage payment, you need to consider the variables. Will a child or children be attending college while you live in your new home and how are you going to approach the additional expenses? If you are going to rent out your present residence, is there a source of funds to cover the down payment as well as the other expenses of the new home? If you are going to sell the present residence, how is the equity of the present residence going to be used? These are just a few of the scenarios that should be discussed with a lending professional.
Step 4 Find a Dream Home:
Determine a geographical area that suits your needs for commute time, proximity to shopping, schools and recreation. Decide whether a townhouse, condo or a single family detached property fits your life style. What are the amenities you would like to see in your new home – number of bedrooms, number of baths, garage, fireplace, garden tub, square footage, size of lot, etc.
Buyers Representation by Amy Shair
Call Amy at (919) 818-5001 or Info@AmyShair.com to schedule your initial Buyer Consultation.