The process of buying one home and selling another is bound to be stressful for some. I get it. It’s something I witness on a daily basis. That’s why I’ve made this list for you, to help you keep that stress level low:
- Have your current mortgage papers in hand and get to know their contents. Doing this can help you avoid all kinds of trouble. Figure out if your mortgage has any conditions, if your mortgage is portable, if you require more funds or if the rate is blendable. For example, if it turns out to be portable, you may want to have it with you when you go to your new property. If you don’t in such circumstances, you might suffer from discharge penalties.
- Know your penalties. Strange as it sounds, occasionally it can be beneficial to pay a penalty. I can let you know when.
- Get a price tag and determine the cost of doing business. A market evaluation of your home, and knowing how much it’ll cost you to sell, will let you know how much you’ll walk away with. In other words, you`ll know what you can put towards your new home.
- Get pre-approved. With a mortgage pre-approval you won’t have any excuse for not knowing your budget. Believe me, this is a good thing.
- Now’s the time. Ask your realtor how to get started and before you know it you’ll be buying and selling.
- Be prepared. Don’t forget a copy of your fully-executed sale agreement, as well as a current mortgage statement. *Note – This only applies if you’re using the sale proceeds from your current home to make a downpayment.
- Get qualified. Unless your situation or the lender guidelines have since changed, this will be no different from the first time you qualified for a mortgage. If your situation has since changed, don’t worry, I’ll be ready to advise you.
- Mind the gap. It is not uncommon for the sale of your first residence to close after your move. A short-term bridge loan might be the answer.
- Celebrate! You did it, you have now smoothly swapped homes!
We would be more than happy to help you with your mortgage!