You've outgrown your first home and you're ready to move up to your next home. Your previous home buying experience will come in handy, but remember that the market changes year-to-year and brings new challenges.
One big challenge today is that many areas are in the middle of a seller's market. In other words, in some areas there are more people buying than selling. Today's buyers have to move quickly to secure a house before someone else buys it!
Second-time buyers have a few extra challenges, like trying to sell and buy a home at the same time. Here are a few tips to help prepare you when shopping for your next home.
Give yourself some wiggle room
In a perfect scenario, the sale of your current home will coincide with the purchase of your next home. There are other options to consider in case your house sells too quickly or not fast enough.
Some sellers choose to focus on buying so they are confident they will find a great house. To be prepared for this situation, you can plan ahead to save enough money for a down payment and closing costs on the new home before selling your current house.
You may even consider keeping your first home and using it as a rental property to earn extra income. Before making any decisions, be sure to work with a mortgage originator to understand your options.
Make alternate living arrangements
Many second-time home buyers feel more comfortable focusing on the sale of their first home. This way they're ensured they won't be faced with paying for two mortgages at once.
One popular option for this scenario is to stay in a short-term rental in between buying and selling. This can take a big load off your mind. You will have time to focus on selling your house without worrying about not having a place to live. Check your budget to ensure you can comfortably afford this option.
Don't go at it alone
At Wright-Patt Credit Union, our friendly and knowledgeable Mortgage Loan Originators are here to help you save money and help you make the best decisions for your situation. We can also help connect you with realtors who can help you find your next home and help with the sale of your current home. When you're ready to meet face-to-face with a Mortgage Loan Originator, simply visit your closest Member Center or connect with a Mortgage Originator directly.