Seven things you should think before you sell your home

If you own and your resolutions is to move in and buy another property, evaluate the following points before taking the decision

How are your finances?

You always need some savings to embark on a new purchase.

Buying a house costs.

Where did you get the money? It will not allow you to take out a loan to afford the expense of purchase.

Evaluates if you have money for a downpayment or closing costs. You could get a contribution from sellers but it is not always like or that does not cover all expenses.

The move also costs, including transportation, transfer services or new equipment and furniture that you need at the new home.

Analyzes how your credit.

They evaluated to approve you a new loan and although it has to be perfect, need at least have all your payments on time, without delays for a specified time.

You must show that the ratio of debt versus income allows can buy another property, if you buy before selling your current home.

Your job should be stable and usually require you to have two years of employee in the same field.

Buyer unsold, you must prove that you can pay two mortgages at the same time.

If you’ll stay with the other housing, taking into account that you may not qualify for certain types of loans and buyer programs that will use the property as your main home.

In some cases you might consider as an investor. Ask first if so and the legal and tax implications that will bring.

At present, after several years of mortgage crisis, many homes remain without “equity”, ie they have no profit if sold. Worse, many owe more than they are worth.

If that is the case, it would be a good idea to sell unless you can make an arrangement with the bank that holds the mortgage (something not usual except in cases approve them a short sale).

It is important to know the real value of your current home, ideally with a professional appraisal. If you can not, try receiving a Comparative Market Analysis that will give you at least an idea.

If you want to sell analyzes whether your home is ready for sale.

Check if you have to make some arrangement before selling and how much it will cost.

Seriously if your decision to sell make any arrangement before putting it on the market.

What differences would you have with your current home? Does size that is one or two levels or the amenities of the community?

Define the house ideally want to buy. Analyzes the characteristics of the property, location and whether it is new or used.

monthly payment you can do. When you calculate it includes the mortgage payment, maintenance, property insurance and taxes.

If you are trying to sell and buy at the same time, it plans well. You could sell earlier than expected and have not found your new home.

In that case you must have a “plan B” as the home of a relative where to stay while you conclude your purchase or a place you can rent temporarily.

If it is the opposite and the purchase of the new house is ready first sale of your old home, you must be ready to pay a few months of double mortgage.