By the nbkc Home Loans team
So you’ve done the whole “first house” thing. You got through the obstacle course that is searching online, getting approved for that loan, and finally scoring that contract. Now you’re feeling the itch to move again, whether it’s for that job across the state, making room for your growing family, or maybe you need less space than you first thought.
Whatever your reason is, we’re betting you have some questions on what there is to know about selling your first house. Our loan officers sat down and wrote out some answers to your top questions. Check them out:
1 - What are some signs that I’m in a good place to sell my home?
You’ll know the time is right when similar homes in your area are selling fairly quickly and offers are full price or near full price. This means even if you aren’t quite ready to pack up the house, you should be keeping tabs on sales in your area early on, before you’re seriously looking.
2 - Which should I do first: put my current house on the market, or look for a new house?
Long story short: it depends. It depends on your price range and whether you’d like the purchase to be contingent on the sale of your current home or not. In some price ranges, you can find the next home you want to purchase and then put your existing home on the market, and it’ll be under contract within a few days. Ultimately, it comes down to your comfort level, your strategy and the price ranges of both the buy and selling property. Your lender can work with you to create a strategy that makes the most sense for your situation.
Loan contingency = A clause written into your contract that gives you the right to bail out.
3 - At what point during my search should I begin the loan process?
Start early,before you are seriously ready to purchase. Too many borrowers wait until they have found the home of their dreams and then start working on financing. This can be a problem for two reasons: One, if you’ve found your dream home but have no pre-approval, then you can’t submit an offer right away. Two, issues with credit can slow down the process, so if you don’t start early on then it can really stretch out your timeline. When it comes to a home loan, it’s best to prepare as early as possible.
“Too many borrowers wait until they have found the home of their dreams and then they start working on financing.”
4 - Are there hidden costs involved with selling my home?
Yes - be aware of any fees that you’ll be paying to sell your home, and work those costs into your overall budget. Be sure to ask a real estate agent, a loan professional, or the title company for a breakdown of all the costs associated with selling your home. Most important, be prepared for potential issues that could come up at inspection. Even the best-built homes will have inspection items the buyer would like you to correct, so don’t take criticism of your home personally.
So if you think it’s time to sell, it’s never too early to get prepared, do your research and make a plan. If you’re ready to make the move, go ahead and contact a loan officer - we’re ready to tackle this with you.
Have a burning question that we missed? You can always send them to us on Facebook or Twitter. Our loan officers love to answer your questions (really).
Best of luck selling your home,
The nbkc Home Loans Team