Things to Know Before You Decide to Sell Your Home and Buy Another One

When you decide to sell your home, the next decision is where you will live. If you decide to buy another home, you must consider how you will make the transition. Three things will impact your choices and make the process either more difficult or easier when handled correctly. Know Your Budget You must know how much money you have to put on a new place to live. If you’re currently paying a mortgage, do you have money to take on a second payment? Many lenders won’t approve you for a loan unless your income has increased substantially or your current payment is low.   Know the Market If you’re counting on the sale of your home to pay the down payment of a new home, you’re going to need to have a pretty good idea how much your property is worth. Will the purchase price pay off the mortgage with enough left-over to pay down on a new home? You also have to know the lowest price point you’re willing to take if the buyer doesn’t offer full asking price. When considering the market, you want to know how it is in the area where you’re selling and the area where you want to buy. A buyer’s market will benefit you where you want to buy, but you want a seller’s market in your current neighborhood. The type of market for the area will impact how much negotiation room you have and how fast homes will sell. Know Your Options  Choosing to sell one home and buy another isn’t a straightforward process. You have multiple options for how...