Buying a House When You Already Own a House

While first time homebuyers make up a good percentage of those looking to buy a house, most people buyinga home are already existing homeowners. Buying a new home while also selling the home that you currently own can be a challenge, but properly preparing can ensure that the process goes smoothly. Working with a qualified real estate agent is one of the best ways to make buying a home while selling a home as low-stress as possible.

When you are buying and selling a house simultaneously, it is not wise to put your house on the market without doing some research first. Understanding the market and current home values will allow you to price your home competitively, and make it more attractive to buyers. Your real estate agent is invaluable when it comes to this task- he can access the tools needed to find sales prices for comparable properties in your area. Selling your home quickly is essential in order to avoid having two mortgage payments to pay each month.

In some cases, your current home may sell and close before you are able to move in to your new home. You should have a plan in place in advance to deal with this issue. Some options include storing your belongings and staying with friends or family members until your closing date, or securing a short-term rental. Either way, it is important to have funds set aside in case this situation occurs.

Purchasing a Second Home

A second home can be a great investment! Whether you use the property as a vacation home, or an income generating rental, purchasing a second home is a smart idea for many people. The process involved in buying a second home is very similar to buying a first home. You will have to secure financing through a lender, and go through closing before you can take possession of the property. Carefully review your budget to ensure that you can afford the extra monthly expenses associated with a second home. You must also consider your source of down payment money- most people use money from their savings account when buying a second home.

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