Three mistakes made by homebuyers when looking for a larger home
You have bought your first home…..it is now 5 years later, the family is growing and the house seems to be getting smaller, so you are considering upgrading to a larger home. Be wary as there may be more complications than you think. You have a pretty good credit score so you know you will be approved for that mortgage loan, so money isn’t the issue anymore, well at least for the next few months. So how do you sell your current home without losing too much in the interim?
If you have the cash resources to buy a new house, money won’t be an issue, however if you will be applying for a mortgage loan, your mortgage broker will tell you to sell your old house first just in time for you to buy a much larger one. With this said, you won’t have to worry about carrying two households or even worse having to pay for two mortgages every month.
Before you start to panic and start worrying about making the mistake of selling your old home for less than the market value, let’s have a more in depth look on the 3 mistakes people need to watch out for. Knowledge is power so here are errors that can help prevent any future financial troubles, not to mention better prepare you prior to placing your home on the market.
Be a realist rather than living a fantasy.
Like most homeowners moving into a larger home to improve their quality of life, the problem with that is, most homeowners don’t take into account the huge gap with what they want to buy and how much money they actually have in their accounts. So before jumping the gun and purchasing a home you can’t afford, the best thing you can do is speak to one of our Noble mortgage agents. We can help you match the money you have on hand to be able to afford your dream home.
Renovations may be required.
A lot of homeowners forget to think about home improvements and what is needed to prepare so buyers are interested in buying their home. Now-a-days newly renovated homes are sold for a higher value, which can bring more profit to the owners. The fixer-uppers don’t have to be pricey. Although they are minor changes, but will benefit you in the long run.
Sell first than buy.
It’s always a good idea to sell before thinking of buying a new property. You will be at a huge disadvantage if you’re likely to buy first as you will give into an offer you don’t want because you are obligated to pay off the cost of the new house. Now if you had sold the old property and settled up your mortgage obligations it becomes much easier, in fact to make a purchase and apply for a new mortgage loan would now be effortless.
Being pre-approved for a mortgage loan is a critical factor when making a home purchase, so recognize the value of a pre-approval and the role it plays in your finances and advantages you will have. To get your dream home, ensure to get your loan pre-approved first and foremost and you may get the house of your dreams for much less.
Have one of our Noble Mortgage brokers who are dedicated & qualified to help you. We may just have the right people for you.