Posted on September 17, 2015 - 11:26 AM
by Justin Rollo @SignalBos Boston.com Correspondent
Each year we assist clients who are looking to upsize their first home and get into something a bit bigger. Whether you are moving from your cramped condo in the city or selling your starter home in the suburbs there are a few tried and true things you should keep in mind when looking to upsize into your next home.
1. Hire the Right Team - When facilitating two deals simultaneously it is extremely helpful to find one team of professionals and employ them on both transactions. If you are moving within the same general area and it is possible to utilize the same real estate agent, attorney, and vendors it can be tremendously helpful in coordinating deadlines and closing both transactions successfully by removing the potential for miscommunication between multiple parties.
2. Know Your Numbers - Now that you've hired your team you want to consult your real estate agent and go over the numbers involved in your sale. What this means is that you want to find out the estimated payoff on your current mortgage and relay this to your agent. With this they can discuss the total costs to sell your home and give you an estimate for what you will put in your pocket from your sale at various price points. You can utilize this number to estimate your potential down payment for your eventual purchase.
3. Get Pre-Approved - Now that you have an idea of what you're going to take home on your sale you can reach out to a lender for a pre-approval. When both buying and selling it is even more important to get fully pre-approved upfront. What does it mean to be fully pre-approved? This simply means you provide all documentation, including pay stubs and tax returns upfront instead of after you get an offer accepted. Doing this legwork upfront makes your pre-approval much stronger and significantly removes the chance of running into any issues with financing.