Thinking of buying your next home? 5 Questions You Need to Answer
You’ve already bought your first home, so the second time around should be a breeze, right? Experiencing the home buying process does give you first-hand knowledge of how purchasing a home works, but, there are some important things to consider when selling your first and buying your second!
Answering these five fundamental questions will help set you up for a smooth next home buying experience.
1. Is now the right time?
There are times when a move is necessary, however, deciding to move to a new home is not one to take lightly. Sometimes, it’s just better to wait. Being in a new home has significant benefits, especially if having extra space is at the top of your list, but you don’t want the burden of being financially strapped. Take the time to estimate the costs of a new mortgage along with any added expenses such as higher utility costs and taxes. If you think you can handle it, go for it! But, if it looks to be out of reach, start saving or putting extra money on your current mortgage to fatten up your equity! Check out our must-have Faris Team mortgage app for help in figuring out where you sit financially.
2. Do I buy or sell first?
Most people choose to buy a new home after they have sold their current one, using the equity of the sale for the purchase. The thing you want to consider when selling first is the ability to find a new home within the time frame of having to move out of your old one. Selling first is a financially wise decision as it gives you the best idea of your buying capability and prevents paying two mortgages. However, what if the right property comes up and you can’t pass on buying it before you sell? In this case, you can make an offer to purchase the new home which is conditional on the sale of your current one, or ask for an extended closing period to give you time to sell. Seek advice from your Realtor®, as they know the market best and can help you decide which option is best for you.
3. Do I need to be pre-approved for my next mortgage?
You may have a pretty good idea of how much mortgage you qualify for, but there are many things to consider for your next mortgage. Many things may have changed since the first time you bought; your job, interest rates, rules of lending and borrowing as well as your debt or income. In short, yes, it’s a good idea to have a pre-approval in place, so you know where you stand when you are ready to purchase your next house.
4. What do I need and want in my next home?
A good Realtor® will help walk you through this process, starting with asking asking you why you are moving. Do you need more room because your family is growing? Are you changing jobs and need a better location? Is this a long-term or short-term move? Another great way to nail down your needs and wants is looking at the things you dislike about your current home, and the things you wish were different. You’ve probably learned from buying the first time around that compromise is a part of the process. Keep in mind that you may not get all the boxes ticked, but the key to finding your next home is to determine what’s most important to you.
5. Is my home in any shape to go on the market?
Maybe and maybe not, but, with the help of your Realtor®, it can be. Check out these 10 Steps for Simple Home Staging to get you started along with these great ways to survive the selling process! Part of choosing the best real estate team to represent you is having the peace of mind that you are in the hands of experts who will set you up for success and provide honest advice, helpful support and excellent resources to get a home that isn’t quite picture-perfect yet, looking ready to sell.