One of the most exciting things you will undertake in your life is buying a home. It can also be one of the most daunting. It doesn’t matter if this is the first time you have purchased a home or if you’ve bought and sold a few. You have a lot to think about and consider. If you make the right choices during the process, you can come out with a great deal on a new home. To make sure you pull this off, you need to have a general understanding of the process. Here’s a list of frequently asked questions from home buyers so you can enter the home buying process more prepared.
Do I need to sell my current home before purchasing a new one?
If you currently own a home, you have an important decision to make. Sell first or buy first? It’s unfortunate, but there is no definitive answer to this. There are pros and cons to each, and you will have to decide which is the best path forward for you and your family.
If you sell your home first, you’ll have significant negotiating power for the new home you want to buy. Sellers love making a quick sale, and since you will have cash in hand, you can do this. The downside is you may have nowhere to live until you find and close on a new home.
On the other hand, if you buy a new home first, you could very well end up paying two mortgages. There are no guarantees when selling a home, and you have no idea when your current home will sell. There is another option – purchasing your new home on the contingency that your current house sells. However, sellers can be impatient and may not like this idea. They can cancel the sale and seek out a non-contingency buyer.
Should I talk to my bank before house hunting?
This is a great first step in your home buying journey. Whether it’s your current bank or a different one, having a pre-approved loan makes you a very attractive home buyer. Many realtors and sellers will not take a buyer seriously if you do not have a pre-approved loan. Also, this gives you a good idea of what the bank is willing to loan you and helps you set your price expectations accordingly.
Do I need a realtor?
This is a common question. You can certainly attempt to buy a home without a realtor, but there are plenty of pitfalls you could stumble upon. Having a realtor is a huge plus for you in any home sale transaction. Your realtor is familiar with all the paperwork, fees, and contracts you must sign. They can help you locate suitable homes in your price range and negotiate for you when it’s time to make an offer. They are aware of current market trends and can help you steer clear of overpriced homes.
If you are looking for a trustworthy, local realtor, I’m here to help! Call me at 717-253-3259 (cellphone) or visit my website at www.karentavenner.com and let’s get started on your next house-hunting adventure.