You’ve already been through the process of purchasing a home, and now you’re looking to make that next purchase. But, you may be surprised to learn that the buying process will be a little different this time around – including managing the sale of your current home as well as experiencing the new government regulations. But don’t worry; First South Bank loan officers are available to you every step of the way.
Changes to Home Buying Process:
If you haven’t purchased a home since 2006, you’ll notice significant changes to the home buying process. Most notably, you will find that you are required to answer more questions, fill out more paperwork, and will held more accountable to the Ability to Repay requirement. With new regulations in place, you may find you have more questions and reservations. With that in mind, you should consider more than the lowest interest rate and look for a loan officer you can trust and who can help you navigate these new waters as smoothly as possible.
Costs to Consider:
Selling your home may incur costs that you didn’t have to worry about when you were purchasing your first home. Be aware of the costs associated with selling and buying home.
- Even small scale updates and repairs can cost money as you prepare your for home for showings and open houses. Some homeowners choose to pay to have their home “staged” in the hopes of a faster sale.
- You may be required to pay for inspections or appraisals of your home.
- If you choose to sell your home through a real estate brokerage, you should factor in paying a commission to your real estate agent, as well as possible closing costs for yourself or the buyer.
- Some homeowners need to secure the use of a storage unit to house items while they have their home on the market or while they are in between homes.
- What about your down payment? You should take the time to determine how much of your current home you own. The equity in your home can be used as a down payment. However, if the payout won’t leave you with what you need for a future down payment, how will you make up the difference?
If you’ve considered these costs, and you’re really ready to purchase your next home, the next step you should take is a pre-qualification through a mortgage lender. Yes! You should pre-qualify again. Even though you’re an existing homeowner, it gives your offer to purchase a greater weight of sincerity to a potential seller. It will also help you determine again how much home you can really afford, just as it did when you were a first time home buyer.
Why First South Bank:
At First South Bank, we understand that as an experienced home buyer, your financial goals have changed since you purchased your first home. That’s why an experienced mortgage loan officer is so important. You may have many more financing options available to you than you did when you purchased your last home. It’s important to understand the differences in these options and discuss with them how First South can tailor that loan to fit your specific needs. It’s just another way we put you first!
To learn more about the home loan options available to you as an experienced home buyer, schedule a meeting with one of our mortgage loan officers or send them a secure message.