Much of my current listing inventory belongs to homeowners wishing to sell and purchase a larger, maybe nicer home that they previously might not have been able to afford.
If you find yourself in that crowd, I have some advice for you before you place your home on the market:
Call a lender!
Purchasing a move-up home on a contingency is difficult enough as it is. There are a lot of logistical issues to work out. Just as important, lending regulations & qualifications have changed greatly since you bought your current home.
*You need to make sure that your credit is healthy.
*You need to determine what you can realistically afford.
*You need to determine how much money you will need to put down on the new home. This is extra important if that down payment is coming directly from the proceeds of the sale of your existing home.
I recently received a call from someone in this situation. I referred her to Gene Mundt of Chicago Bancorp to work out the details. It was a good thing she called him first. She had forgotten about co-signing a loan for a family member some time ago. It's not a major problem, nor will it prevent her from purchasing another home, but she did need to gather some extra documentation to explain the situation. More than that, it does impact how much she can spend on her move-up home. I, and this client feel much better knowing these details BEFORE we start the process.
After that, your next call should be to your local real estate professional for a comparative market analysis on your home. Along with the market analysis, an equity sheet, or net sheet should be completed so that you can see a good estimate of what your selling expenses will be, as well as how much money you can expect to net from the sale. That particular detail could mean the difference between staying put for awhile or moving.
Selling and buying a home is HUGE event in your life. You need to be as educated as possible about it and align yourself with real estate and lending professionals who are experienced and know what to anticipate. Preparation and education are key to a successful transaction!
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