Get Your Finances in Order: To-Do’s
Before starting your search for the perfect home, it’s a good idea to get your finances in order. In most cases, the process of buying a home involves applying for a mortgage, and you’ll need to have all your ducks in line to get approved.
1. Develop a household budget. Instead of creating a budget of what you’d like to spend, use receipts to create a budget
Selling one, buying another
In a perfect world, you sell your old home and buy the new one on the same day. Given that things rarely turn out perfectly, here are some things to keep in mind as you work to negotiate the sale of one house with the purchase of another.
Time it right
Fall and spring are the best times for homes to move and you want to consider the season of the year when buying and selling. And if the closing dates aren’t going to coincide, a gap rather than two mortgages is the better. Its easier and usually cheaper to find temporary housing than juggle two mortgages.
Selling first
Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing, its generally cheaper than two mortgages. Get an appraisal first thing off the bat. That way you’ll have a good idea how the sale of your home will effect your purchasing power on the new one. This will help keep you from over extending your mortgage abilities.