f you're thinking about convinced them the new home would
selling your home and only cost them another $200 per
moving up to a larger home, month.
do your math homework before
offering your home for sale. Read The family had no trouble selling
the following story to see what their home. To qualify for the
can happen to home sellers who new home mortgage payment, they
don't do their math. had to pay off the minivan,
student loans, and the credit
A young family sold their home in card debt. Out of their home sale
California, before they proceeds, these payoffs left less
determined how to buy their next than a 10% down payment for their
house. All they thought about was new home.
moving into a larger home for
their growing family. Because of their changed income
and low down payment, they didn't
Two years before, after this qualify for the new home of their
young couple purchased their choice. With only 5% down, the
first home, they bought a minivan couple had to pay higher interest
with payments. They increased rates on a second to avoid
their credit card debt with home mortgage insurance. Without the
furnishings purchases. Then, the wife's second income, the total
wife quit working to stay home payment meant that they only
with their new baby. The family qualified for a new mortgage for
still had sufficient money to a home which cost less than the
make all payments on time. one they sold!
They fell in love with a larger Before you put your home on the
new model home in a nearby tract market, make sure you can buy the
home development. The sales agent home you want.
2. Determine selling commission
Consider the following financial expenses. Can you sell your home
concerns: effectively on your own or do you
need to pay 4-6% of your selling
Talk to a loan officer and check price for a real estate agent's
your credit. Don't get caught expertise?
after selling your home, when
it's too late, to repair any 3. Estimate your closing costs.
credit issues. Of course, you may Ask a local closing or escrow
have a great down payment from company for an estimated closing
the sale of your home, but other cost amount for a home in your
bills like credit card debt, auto price range.
loans, and student loans may need
to be paid off so you qualify for 4. How much work does your home
the new mortgage payments. need to ready the property for a
top-dollar sale? Which upgrades
Ask your loan officer how much of or redecorating expenses make
a monthly payment and the down sense financially?
payment amount you'll need to buy
the home of your choice. Consider all the expenses of
selling, determine your actual
Do your math. How much can you profit, and compare that amount
expect to net from selling your to your required down payment.
home? How much of a home you can buy
with your qualified monthly
1. Do you have a mortgage payment amount?
pre-payment penalty that could
eat up a significant amount of After you do your math homework,
your equity? you'll be ready to think about
selling your home. Don't get
caught like this young family and Fisher - All Rights Reserved
be forced into a smaller home. Worldwide.
Copyright "© 2005 Jeanette J.
About the Author:
Jeanette Fisher helps stage homes for top-dollar sales. She teaches Design Psychology and real estate investing. Jeanette is the author of many books including "Sell Your Home for Top Dollar--Fast!" and "Credit Help! Get the Credit You Need to Buy Real Estate." http://recredithelp.com Free "Credit Tips for Mortgage Financing" http://sellfast.info
Source: www.isnare.com
