The Secret to Buying and Selling Simultaneously

Here are the different ways you can go about buying and selling homes.

Can you sell a house and buy another at the same time? Contrary to what you may

have heard, it’s possible, and today I’m going to show you how.

Let’s start with your current home. Before you start looking to buy, you should

address what you have control over. Make those little repairs, declutter, clean,

and have professional photos taken. 

Even though your home’s not on the market yet, you want it to shine when buyers

see it online. At this point, I also recommend a pre-listing home inspection to alert

you of any potential issues ahead of time. 

Then we need to look at your financial situation to make sure you have the ability

to buy another home. Even if you have good credit, that doesn’t automatically

mean you qualify to hold two mortgages simultaneously. 

“I recommend a pre-listing home inspection.”

One way to buy before you sell is with a home equity line of credit. A lot of

homeowners these days have a lot of equity, and if you already have a line set up,

you can pull money from that to use as a down payment. 

A bridge loan is another option. It allows you to have money to put down on your

new home, and then you can pay it back once you sell your current property. You

have to be able to qualify for all of these payments, however. You could also

borrow against retirement funds, which would make me nervous, but it is an option. 

The last resort is making an offer on a new home that’s subject to selling

your current home. You could get beat out by another person without the

contingency, but sometimes it’s what you have to do. We’ve been able to make it

happen with this strategy in this market.

If you want to have the best chance of having your home purchase and sale go

off without a hitch, reach out to me. I would love to hear from you.

How Much House Can You Afford?

 

Explaining the factors that determine how much home you can afford.

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It’s easy to look at homes online and find one you love, but how much home can you truly afford? There are four things we look at: your monthly income, cash reserves, debts and expenses, and credit profile. Let’s start with the debt-to-income ratio because it’s one of the first things a lender will look at. As a general rule, your mortgage payment and housing expenses should total up to no more than 28% of your monthly income. If you make $5,000 a month before taxes, 28% of that is $1,400 a month. In a perfect world, that house payment, including taxes and insurance, should be no more than $1,400 a month.

“How much house you can afford is closely tied to the interest rate."

The next thing that lenders look at is your total debt. Maybe you have a car payment, a few student loans, and a credit card. All your debts should be no more than 36% of your monthly income. With that $5,000 a month example, you’d want your debts to equal less than around $2,000. Keep in mind that you want to be safe about these numbers. Some lenders will let you go up to 50% with these ratios, but my advice would be to stick with the 28% and 36% rules. Also, don’t forget that you have other costs when you own a house, like taxes, utilities, insurance, and the costs of repairs. Make sure you budget for all of that as well. How much house you can afford is closely tied to the interest rate, and the secret’s out: Interest rates are going up. If you are thinking of buying, I would do it sooner rather than later, and you need to speak with a lender beforehand. We work with the best lenders in the business. They’ll get you a good interest rate and make sure your ratios are in line with what's best for you. If you have any questions, feel free to call or email my team and me. We’d love to help you.

Buyers Beware: Look for These Home Issues

 

Here are five home inspection red flags to beware of when buying a house.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

If you’re in the market to buy a home, you should always be on the lookout for certain red flags during the inspection process. Remember that home inspections are typically non-invasive; they’re just visual examinations of the property. The inspector isn’t going to catch everything, but they will find most of the issues that could be deemed red flags for you as a buyer. Today I’ll share five of the red flags that may show up: 1. Safety issues. If the inspector finds that the steps on the house aren’t level, the water heater temperature is set too high, or there’s a heavy presence of carbon monoxide in the home, that should send up red flags. Items that constitute safety hazards should be fixed before you proceed with the purchase. 2. Foundation issues. In our area, there are a lot of homes with basements, and they almost all have some sort of water issues. However, you still want to keep an eye for things that are outside of the norm, such as cracks in the foundation, areas that are sinking, or water seeping into your crawlspace.

“Items that constitute safety hazards should be fixed before you proceed with the purchase."

3. Mold. The presence of mold is a big safety concern, so that should be addressed before you buy. 4. Termite damage. Termites can eat through the support for your floor and other wooden areas of your home, so be sure to have a termite inspection done. 5. Electrical issues. Especially if you’re buying a home built before 1970, you’ll want to take a close look at the wiring of the house. Many older homes don’t necessarily jive with more modern technology, which could ultimately end up as yet another safety issue. Whether you’re looking to buy a home, you’re a seller who wants to have your home inspected, or if you have any questions about the home-inspection process, don’t hesitate to give us a call or send an email.