How Long Should You Wait to Buy Another Home?

Homes are always a good thing to have, no matter if you have a family of your own or are single. But it can be very tempting to go out and purchase another one for a number of reasons.

Maybe you are looking to move to a new area, or would just like some more space for a growing family. Overall, there is no set timeline about how long you should stay in one spot before moving to another. It will all depend on your individual circumstances.

Still, it is important to mull over a number of aspects before making the switch to a new home.

What Should I Be Thinking About Before Moving?

The biggest aspect on your mind should be finances. It is important to consider how much you could sell your current house for, and how much money you could set aside to purchase another one, or at least be able to pay a mortgage.

It can be tempting to ‘live above your means’ and buy a home that stretches your finances, but bigger houses will come with additional expenses relating to heating, cooling, and general upkeep than smaller ones will.

Some people will have the financial resources to quickly buy another house, while others will be on a much longer timeline if they are trying to work out finances.

The amount of time before buying another home will also be heavily influenced by the market in your area. If you are looking to buy in a seller’s market, you might want to wait a little bit until things change so you could get a better deal. You will have to think about how important these types of factors are and if they are going to influence when you will buy another home.

Click here to learn tips for preparing your home before moving in!

This is where a good real estate agent comes in, since they will have access to a wealth of experience and market data to give counsel about the optimal times to sell and buy.

Another important aspect when trying to decide when to buy another house is based upon the actual moving process. It can be very expensive to move a family far away, especially since you will have to find new jobs and schools for the kids. There is no set timeline on these types of decisions, as they all hinge on the individual circumstances related to you (or your family).

What Are Some Things to Watch Out For?

Even if you are looking to sell quickly and move somewhere else, there are a number of situations where you should probably wait to sell. For example, if you just moved to your current house, having to move again will probably stretch your budget. It would then be best to wait a little bit to save up some money for a move.

Additionally, do not be prompted to sell due to unfamiliarity with the area, especially if you just moved in. These types of feelings are usually temporary, and will go away once you get used to the surrounding area.

A situation where you are taking a loss or ‘breaking even’ on the sale of your current home is another factor that should encourage you to buy at a later date. These types of scenarios often make it harder to get financing on your next home, which can drastically affect your next buying experience.

Are you thinking of buying or selling a home in the Orange County area? Click here to contact the Stacy and Nicole team today!

Courtesy of Cuselleration

5 Steps to Break Free of Mortgage Trouble for Good in Northern Orange County

The short sale process could seem intimidating, but getting a handle on the steps can make it a lot less scary. A short sale is where homeowners sell their home for less than they owe on their mortgage. This is often the last resort for people who cannot pay their mortgage and are facing foreclosure.
How does a short sale work? Read the steps involved below:
1. First consider a loan modification
Before you assume that you need to have a short sale, speak to your lender or housing counselor about your current situation. You might be able to get a loan modification and avoid having to sell your property.
The federal Home Affordable Modification Program is a project run by the U.S. Department of Housing and Urban Development and might be a good option. If you are eligible for HAMP, your mortgage company will most likely put you on a trial plan for three months. This will give you time to show that you can make timely payments at a new monthly payment level. If you make it through the three-month trial, you might have a new mortgage payment and avoid moving ahead with a short sale.
If you can’t make it through the trial, the next step would be to move forward with a short sale.
2. Speak to your lender about a short sale
Since a short sale means you are trying to sell your home for less than you owe on your mortgage, your mortgage lender will need to sign off on it. But initially, the lender is going to need proof that the short sale is necessary.
The sellers need to submit a short sale packet. This includes hardship papers that show the bank the seller is currently undergoing financial hardship.
That paperwork might include account information and bank statements, copies of bills, pay stubs, asset disclosures and more.
3. Call a real estate agent
You will need a real estate agent to sell your home. Since short sales are complicated, you will want an agent with experience in the short sale process to handle the deal.
The agent will then assess your financial situation as well as the property’s estimated value to estimate a listing price. Click here to get in touch with Stacy and Nicole to schedule an in-home consultation!
4. Listing your home
This is one step in the short sale process that is like any other home sale. The property in question is listed by your real estate agent, who will search for a buyer and get your home under contract.
When you get an offer from a buyer, it must be submitted to your lender for review. Further negotiations might be required between the buyer’s agent, your agent and the lender until a settlement is reached.
If your lender has approved your short sale under the United States Treasury’s Home Affordable Foreclosure Alternatives program, it will be done in about four months. If you did not qualify for HAFA, the process could take longer.
5. Closing the deal
If your mortgage lender approves your buyer, you will move out and the buyer will move in. The money used to purchase the home will go to your lender and your mortgage debt will be forgiven.You will also walk away with three thousand dollars in moving expenses if you qualified for HAFA. If you did not qualify, you simply walk away without the mortgage debt on your shoulders.
Do you need a real estate professional to sell your home? Contact us here!