As a homeowner, you may at some point, want or need to move to a new home. The optimal situation would be to settle both transactions at the same time or within a few days of each other. Truthfully, it comes down to a little bit of luck and timing. There is always a risk with any home sale or purchase where something could pop up and hold up the simultaneous process. However, there are ways you can prepare yourself for a smoother transition. We’ve provided a few below.
Ready Your Home for Sale. First, you’ll want to make any necessary repairs that could hinder your sale. Leaky faucets, floor/rug stains, holes in walls, or peeling paint are major items you will want to fix before listing your home for sale. De-cluttering the interior and creating an inviting outside curb appeal are also important areas you will want to focus on. Expect a prospective buyer to be looking at everything from the moment they approach the home.
Apply for a Mortgage Pre-approval. Once you’ve prepared your current home for sale, you will need to know how much you can afford. Your loan officer will help with a pre-approval so when you do find a home, you’re prepared to put in an offer. Depending on your financial situation, you may want to consider alternative options. For example, if you need to carry mortgage/expenses from both homes until your home sells or a short-term rental option if your home sells before your new home is ready to move into.
Bid on a Home. Once you have your pre-approval, you can start bidding on homes that fit your budget. To prevent delays and just as you have prepared your home for sale, hopefully, you’ll be lucky enough to find a seller who has done the same. Finding a realtor who knows the neighborhood is a great place to start. They will be able to tell you about the home’s history if improvements and standard upkeep such as roofing, windows, and siding were made, and when. It’s also a good decision to obtain a home inspection. The more information you can gather about the home before you buy, the better you’ll position yourself to prevent delays.
Bottom line: Coordination between buyers and sellers is not easy. Having a knowledgeable loan officer/realtor team, preparing your home, and doing research will increase your luck and timing for a smoother transition.
Source: Mortgage Market Guide
