ANATOMY OF A SELL/BUY -- PART ONE

You might think that Part One of a Sell/Buy would be Sell, but no.   Just wanting to move won't get you there.  Part One of a Sell/Buy is Research and Decide.   Research comes first, and then with the information from Research you can Decide if you're ready to start down this road. 

First, Research how much you can expect to realize from the sale of your current home  (House A).  if you don't already have a Favorite Realtor, you can be researching agents at the same time.  You need a Market Analysis, so call 2-3 agents and ask them to come talk to you about listing.  Look for someone you trust, but also someone experienced in the Sell/Buy process.  There are pitfalls along the way that a knowdgeable agent can help you avoid.

Find out from the agent(s) what they think the house will sell for in the current market, and what are the usual expenses of selling.   Then find out from your bank what you still owe on the home.  If you have a second mortgage or equity line, that will have to be paid off as well.

So -- sales price, less expenses of sale, less debt on the house, equals net proceeds.  That's how much you walk away with.

With that number in hand, you're ready to Talk to a Lender.  If you don't already have a Favorite Lender, talk to 2-3 and compare.  Explain to him or her what you want to do.  The loan officer will pull your credit score, look at your income and debts, add any cash on hand to the amount you hope to realize  from selling House A, and process all that information in a unique lender way.  You can ask for different scenarios -- "If I buy at THIS price and put THAT down, what will my monthly payments be?"  

If your financial situation is especially strong, you may be able to buy House B before you sell House A.  Not everyone can afford to do that, and many who can afford it are leery about paying two mortgages for an uncertain length of time.  If you have your lender's blessing and you're comfortable with it, moving out of  House A before it goes on the market can be the way to go.

Finally, it's time to Decide.   The basic question you have to answer is this:  If you sell, will you be able to afford the move-up house you want?  It's a hassle and an expense to move.   You have to decide if this Sell/Buy will get you from where you are now, to where you want to be.

If you decide No, that's not No forever!  It's just No for right now.  

If you decide Yes, then call back your Favorite Realtor and roll up your sleeves.  There's work to be done!