Moving UP? 5 Steps to Take before Buying Your Next Home

By Myra Jensen - The Jensen Team - Home Marketing Experts Keller Williams Classic Realty NW - Licensed in MN

With interest rates still historically low, and prices are still good, but creeping up to a point where some equity has been restored, you may be starting to think about buying your next home. Here are some important points you need to know before buying your next home.

1. Talk to a Realtor®  Deciding to buy your next home is kind of like putting the pieces to a big puzzle together.  A good agent will counsel you and walk you through the steps without making you feel pressured to skip any of them. Once you find a good agent, listen to them, they know this market better than you do.

2. Get a market analysis on your current home.  Have your agent research the current market and give you a realistic idea of how much you can expect to sell your home for in todays market.  They should be able to give you an idea of the NET proceeds you can expect to receive after real estate costs and closing costs.  It is important to know how much you will receive to put toward your next house, or how much you need to bring to the table to be able to sell if you have no equity.  Many sellers are willing to bring money to closing to sell their current home, in order to take advantage of the market and low rates to buy their next home.  Some homeowners are deciding to rent out their current home instead of selling it.  We recommend talking to a property manager as well if you are thinking about going this route, so you can understand the costs involved.  Get Your MN Home Value Here Online

3. Get Pre-Approved for a Mortgage.  Even if you "KNOW" you can get pre-approved, sit down with a lender and get the facts on how much you are pre-approved for, how much down payment you will need, how much closing costs are and what you can expect your monthly payment to be.  If you need to bring money to the table to sell, add this to the amount you will need to buy.  You should be comfortable with all these numbers before moving forward.  You should also find out if you can buy your next home without selling your current home first, especially if you have decided to rent it out.  You will need to qualify for both mortgages in order to do this.  The big question is; will you have enough money after the sale of your current home to put down toward your next home?

4. Understand what you can buy.  What type of home is within your budget?  Have your agent send you listings of available homes  that meet your criteria within your budget. Are you seeing what you like?  Is your criteria realistic within your budget?  The days of low-ball offers are over.  There is an inventory shortage right now so you need to be prepared to act quickly and make a solid offer on the home that you like.  Many buyers are opting for new construction right now to get what they want.  SEARCH FOR HOMES

5. Get Started!  Once you have researched, made decisions and are comfortable in all of these areas, you can take the steps to move forward.  Work with your agent to get your current home ready for the market or up for rent.  Start looking at new homes.  Your agent may counsel you to wait until you receive an offer on your to start touring homes, it depends on your situation and on the market.  When buying your next home, be confident that you are buying your next home at a time where low interest rates are making homes more affordable than they have ever been.

GET YOUR HOME VALUE HERE ONLINE

Need a great Realtor® in Minnesota?  Contact the Jensen Team - Home Marketing Experts at 763-227-0618 for a free consultation.  Keller Williams Classic Realty NW, Licensed in Minnesota.

Originally posted at http://myrajensen.com/2013/03/moving-up-5-steps-to-take-before-buying-your-next-home/