LOOKING TO UPSIZE YOUR EXISTING HOME?
Unlike the experience of buying a first home, when you’re looking to move-up, and already own a home, there are certain factors that can complicate the situation. It’s important to have your Realtor® and your mortgage broker working closely with you.
Timing is critical for the closing of the purchase and the sale. You want to line up the dates as much as possible. You want enough space in dates in case there is a delay. The question is do you need a bridge loan?
Get pre-approved for the new mortgage or porting the existing mortgage. Get a good understanding of this process. If the first person you speak to does not explain it so you fully understand it, find someone who will take the time to educate you. This is a critical step! Maybe you need interim mortgage financing?
Make the necessary improvements to your existing Home. You want your home to sell quickly so you are ready to commit to the new purchase. Fix up the little things. Find a REALTOR® who will help you stage your home. If your home is in good repair, clean, and decluttered it will sell more quickly and for a better price. If necessary use your line of credit (LOC) to do the little fix ups, it will come back to you in multiples. If you are going to use your LOC, inform your make your mortgage as it will change your debit ratios.
Always Sell your existing home first. You want to be in a good position to negotiate on your new purchase and not feel pressure to accept any offer on the sale of your existing home. If you do get a tempting offer on your existing home but haven’t made significant headway on finding your next home, you might want to have your REALTOR® place a contingency clause in the sale contract which gives you a reasonable time to find a home to buy. Another question: Is keeping your existing home as a rental unit an option?
Make sure your REALTOR® and Mortgage Specialist are talking. With two major transactions to coordinate with many moving parts such as mortgage experts, appraisers, lawyers, loan officers, title company representatives, home inspectors or pest inspectors the chances of mix-ups and miscommunication go up dramatically. To avoid a logistical nightmare ensure you work closely with your real estate agent and mortgage specialist.
As a licensed REALTOR® and Mortgage Specialist, I can lead you through this process.