In case you missed part 1: Here it is
Step 3: Qualifying for a Mortgage
You may think I’m jumping the gun here but I’m not. Here’s why…if you want to upgrade or purchase another home you need to review your credit and down payment requirements. I’ve often heard sellers say,
“Well, this place was no money down and easy to get a mortgage on so it shouldn’t be a problem to buy again…”
WRONG!! If it’s been several years since you’ve purchased a home, times have changed. You watch the news or see it all over the Internet, right? Mortgages are available but they are tougher to qualify for. You’re also looking at some sort of a down payment in 99% of scenarios. If you don’t have equity, don’t have savings and don’t have decent credit, you may not be able to buy right now. If that’s the case…stay put if you can. Renting is your other option.
Step 4: Take off the Goggles
DISCLAIMER: I’m guilty of this too! I’ve lived in a dozen homes in my life and everyone gets this disorder. When you first purchase a home you have plans or updates you want to do, right? Time passes, life happens, money comes and goes and the goggles appear. Repairs, updates, broken things, maintenance, etc. You learn to live with all and it becomes a part of home. A buyer isn’t going to see it that way. They are going to see work!
You’ve got three lifelines here: Phone a Friend, Ask an Expert or Poll the Audience
1. Phone a Friend: I’d suggest calling a brutally honest friend. Ask them to walk around making a list of everything that stands out to them as work needed.
2. Ask an Expert: Now is a great time to bring back the Realtor to help you wisely spend money for updates or repairs. Use the Expert as a source of recommendations. You don’t always have to spend a lot of $$ to create value. Cleaning, organization, yard work, color neutralization are all great improvements.
3. Poll the Audience: This is NOT the way to go. Sticking your home on the market without preparing to “See what buyers say” is not profitable. If you’re not ready for showings, you’ll be beat up and eaten alive. It’s competitive out there!!