What is the First Step?
Find out the Value of Your Home
Before you even contemplate any real estate move, the first thing you should do is find out the value of your home. Your realtor will be able to assist you in establishing a selling price. This is especially important if you are considering buying another home as your equity will be an integral part of your decision whether the real estate move is financially feasible for you.
Find out the Value of the Home you wish to Purchase
It is very important to find out the approximate real estate value of the type of home you wish to purchase. This information will help you base your decision to move on solid economic logic rather than emotional excitement.
1. You are Moving Up
Before you begin the real estate process, talk to your mortgage broker or lender to find out the amount of mortgage you qualify for. Nothing is more disappointing than finding the home you want and discovering you are not in a financial position to buy it. Next find out the real estate value of your existing home then ascertain the approximate value of your future home. Start by viewing a few homes that meet your needs. Your realtor can assist you in confirming the real estate values of these homes.
2. You are Downsizing
If you are downsizing you need to take 2 steps. First find out the value of your home. Second view a few homes with your realtor to be assured that you can find the type of home that you want.
You are Transferred
If you are transferred or are contemplating accepting one you need to find the real estate value of your home. Next you should locate a realtor in the area you are moving. The realtor can assist you in obtaining information about real estate in that particular area. It is essential that you view some homes if your transfer is based on an economic decision. Take into consideration, the net equity proceeds from your current home, what you will have to pay for your new home as well as your income. Compare that to your current standard of living.
Is there a Pre-Payment Penalty on my Mortgage?
If you have an open mortgage you will not have any penalty. If your mortgage is closed you will have a penalty. Since the amount of the pre-payment penalty varies contact your mortgage company for a definite amount. If you are purchasing another home and placing a mortgage on it your lender may waive a portion of the penalty.
