Thinking of buying your dream home? Can you afford it?
Lots of first-time home buyers who bought starter homes during the Great Recession of 2009-2014 are looking at all the equity they have in their homes now, thinking, “Is it time to sell and move up to a bigger house or dream home?”
This can be a great idea, for a few reasons:
• Homes in higher price ranges have gone up at a much slower rate than starter homes over the last 10 years.
• Homes in higher price ranges are sitting longer on the market than they previously were, giving the edge to you the buyer when it comes to negotiations.
• Homes in the lower price ranges are still selling quickly, giving you the seller the upper hand.
• Interest rates at the time this article was written are falling, allowing for lower monthly payments.
What does this all mean? It means now is a perfect time to move up!!!
Now, can you afford that dream/higher-priced home?
3 steps to make sure
First, you will need to know how much your home would sell for and how much you would net after paying for the expenses that come with selling a home. I can help you with this - give me a call or send me a text at 971-645-2019, or shoot me an email at firstname.lastname@example.org or
I can do a complimentary home valuation to determine what your home could sell for in today’s market, and help you understand the costs associated with selling.
Next, you need to find out what price range you qualify for. You will need to call a loan officer and start the mortgage pre-approval process. Make sure to do this after you find out from me how much you will net from the sale of your current home, as this will give you an adequate assessment of how much you’ll have to put down toward your new home. The loan officer will shop different lenders and give you a good idea of how much your monthly payments will be. This tells us your spending power, which is vital to honing in on the homes available for you to purchase.
Now that you know approximately how much that dream home will cost you, this is how you really figure out if you can afford the payment. Take that monthly payment and subtract your current home’s monthly payment. For the next three or four months, put the difference between the two into some type of account. Don’t spend anything from that account for that three or four month period. I don’t like when people say, “Well, I think we can afford that.” There can be no guessing games here.
Putting that extra money aside is a surefire way to know if you can or can’t afford that new dream home. And at the end of this test period, you will have additional down payment money if you do decide to make the move to your dream home.
If you’re ready to take the first step toward upgrading to a new home, get your free home valuation by contacting me at 971-645-2019, emailing me at email@example.com
If you would like to learn more about selling your home and some of the best tricks to get top dollar for it. Get a free copy of my Home Seller’s Secrets book by following the link bellow.
Good luck in your Real Estate adventures.
Kip Johnson the only realtor that wheels and deals.