Flint Foley Real Estate Blog

For some people, it’s hard to say goodbye to your first home. However, buying your next home means you’re getting more of what you want – more space, better location, and more features that you didn’t get the first time around. And while buying your first home was likely a time filled with unknowns, that you feel more equipped about the second time around, buying your next home brings about a new set of questions, costs and considerations.












The following 7 tips can help you stay informed, save money, and reduce anxiety when it comes to selling your first home and buying the next one. 

1. Get pre-approved for your new mortgage. There may have been changes to your financial situation or mortgage rules since you bought your first home, so it’s important to know how much you can afford before you spend too much time looking for your next home. It’s always a good idea to set your price range first! 
   
   
2. Know all the costs. When it comes to buying your next home, the same costs apply as when you bought your first one. You’ll need to be prepared to cover items like: land transfer tax, lawyer fees, and mortgage insurance (if you’re taking on a high ratio mortgage). When it comes to selling your home, your realtor will earn a commission from the sale. Make sure you know how much that commission will be, and how much money you’ll have left after covering this expense. 
   
   
3. Choose the right time to sell. Seasonally speaking, spring is often the best time to sell a home. The onset of better weather means your house will show better, and more buyers are willing to get out and look at homes. Plus, many people like to move in the summer, before the school year starts. Ultimately, however, the right time to sell comes down to when you are ready – such as when your family has outgrown your current space, and when you can afford to make the move. 
   
   
4. Make sure your home is ready for a sale. You’ll want to get the best return when you sell your home . This means you want the interior – and the exterior – to look its best. Inside your home, try to remove any clutter or extra furnishings that might make your space look smaller or less functional than it is. Also, if there are any obvious repairs to your home, it’s best to make them before putting your home on the market. On the outside, make sure your landscaping is adding to the curb appeal of your home. 
   
   
5. If possible, sell your current home before you buy. While this may not always be possible, selling your home first can remove the anxiety of having to do it according to a pre-determined (and often accelerated) schedule. Plus, if you’re not able to sell by your ideal date, you may get stuck carrying two mortgages, which can be very expensive. 
   
   
6. Try to coordinate closing dates. If you sell first, you have a measure of control over when the closing date will be. It’s best to choose a long closing – i.e. 60 days or more – to give you time to find and purchase your next home. It can also be a good idea to arrange a closing date for your new home that’s a few days earlier, so you can make sure it’s ready to move into. While you will incur some additional costs to set up bridge financing, this practice can reduce stress and make sure your move happens smoothly. 
   
   
7. Look at ways to use the equity in your current home. If the reason for your move is to get more space or an improved living area, think about how you can use the equity in your home to renovate, before setting your mind on moving. Examine the costs required to make home improvements, and compare them to moving costs. It’s often cheaper to renovate than to relocate. 

When you’re selling for the first time, you want to make sure you’re getting the best price for your home, and able to coordinate your move so that you’re not stuck carrying two mortgages for an extended period of time. You also want to know all the costs involved in both buying and selling so you’re going into your next move informed and prepared.

Moving has many challenges but keeping these tips in mind as you start to consider it can help make your move into that new home as simple and stress-free as possible.


From: Here

Think of a contingency clause as insurance. Once you find a home and make an offer, you hope everything will go smoothly; but in case it doesn’t, you have a contingency clause in place that allows you to back out of the contract without losing money.

Most agreements already have a few key contingency clauses in place to protect against the bigger things—such as a lower-than-anticipated home appraisal—but there are contingencies that go beyond the norm. If you’re about to make an offer, consider all of your options.

Standard contingencies
Some contingency clauses are commonly used when making an offer. Some examples:

• Home inspection: This gives the buyer the right to order a professional home inspection and back out of the sale if major unreported damage is found.
• Appraisal: The buyer won’t be obligated to buy the home if the appraisal value is lower than the asking price.
• Mortgage availability: This gives the buyer time to find financing for the home. If the buyer can’t find financing, either party can cancel the deal.

Atypical contingencies
You don’t have to stick with the standard contingency clauses. Depending on your situation, it may make sense to add additional clauses to the agreement. 
Some examples:

• HOA rules: If you’re considering an area with a homeowners association, it may be prudent to require a copy of the HOA guidelines before you buy. HOA fees vary and if the dues are high, your annual homeownership costs will go up. Many HOAs also have rules on parking, landscaping, paint colors, and even holiday decorations. If you aren’t happy with the HOA, you’ll want the option to back out of the deal.
• Selling your current home: If you’re trying to sell your home before you buy another one, you may want to put a selling contingency in place. If you’re unable to sell your current home within a certain time frame, this contingency allows you to cancel your offer.
• Moving furniture early: With this contingency, you and the seller agree to allow you to move personal property in (or move in entirely) earlier than the seller anticipated. You may have to agree to pay the seller rent if you move in before closing, but it will spare you from putting your belongings in storage and finding temporary lodging.

Adding contingency clauses
A basic offer won’t automatically contain any contingency clauses. While many realtors include some standard clauses in every offer, you should work with your agent to make sure you’re including contingencies for everything you can anticipate before you submit your offer.

Once you’ve submitted the offer, keep in mind that the seller may submit a counteroffer with his or her own contingency clauses as well.

From: http://www.realtor.com/advice/protect-yourself-with-creative-contingency-clauses/

Are you buying a home for the first time? Congratulations! Buying your own home is an excellent way to build your net worth while living in a space that you can renovate and truly make your own. If you're going to be taking out a mortgage to help pay for the up-front costs of your home, you'll want to get a head start on the approval process while you are working with your trusted Real Estate professional. With that in mind, below are four handy tips to ensure that your mortgage application is approved on your first try.


Gather All Of The Necessary Information And Paperwork

You're going to need as much financial data as possible so try to prepare your past two income tax returns, pay stubs and other details ahead of time. It may also be helpful to create a quick budget to show your lender how your income stacks up against your monthly bills.

Maintain A Clean Credit History

It likely goes without saying that you'll need as clean a credit history as possible in order to ensure a quick mortgage approval. If you think that there may be some negative items on your report, try to have a copy pulled before you see your mortgage lender, as they’ll be asking you about them.

Don't Try To Fudge Any Facts On Your Application

Your mortgage lender is legally and professionally obligated to perform a significant amount of due diligence on you before they are able to process your approval. If you’ve lied on your application it is likely to be discovered and will be seen as a serious breach of trust on your part. Even if your financial picture isn’t all that strong it’s far better to be honest than to try to hide or falsify your data.

Make A Down Payment Higher Than 20 Percent

Finally, if you can make a down payment on your home that is higher than 20 percent of the purchase cost you may find it easier to get approved. Placing more than 20 percent down typically eliminates you from various mortgage insurance requirements and can show the lender that you're capable of paying the mortgage back in full.

The above tips are just a few ways that you can work to ensure that you have a better chance at being approved for your mortgage. If you have any questions or for more information contact me: HERE

From: http://www.cleangreenrealestate.com/first-time-home-buyer-dont-miss-tips-ensure-mortgage-application-approved/