ArticlesReader.com Menu

Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup

Search the articles

Articles Main Categories

Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing

Subscribe

Receive alert message from us when new articles submitted to our site for free.

Syndicate

Related Products

Home::Real Estate

Home Sellers Warning

Author : Jeanette Joy Fisher

If you're thinking about selling your home and moving up, do your homework before offering your home for sale. Read the following story to see what can happen to home sellers who don't do their math.

A young family sold their home in California, before they determined how to buy their next house. All they thought about was moving into a larger home for their growing family.

Two years before, after this young couple purchased their first home, they bought a minivan with payments and increased their credit card debt with home furnishings purchases. Then, the wife quit working to stay home with their baby. The family still had sufficient money to make all payments on time. They fell in love with a larger new model home in a nearby tract home development. The sales agent convinced them the new home would only cost them another $200 per month.

The family had no trouble selling their home. To qualify for the new home mortgage payment, they had to pay off the minivan, student loans, and the credit card debt. Out of their home sale proceeds, these payoffs left less than a 10% down payment for their new home.

Because of their changed income and low down payment, they didn't qualify for the new home of their choice. With only 5% down, the couple had to pay higher interest rates on a second to avoid mortgage insurance. Without the wife's second income, the total payment meant that they only qualified for a new mortgage for a home which cost less than the one they sold!

Before you put your home on the market, make sure you can buy the home you want.

Consider the following financial concerns:

Talk to a loan officer and check your credit. Don't get caught after selling your home, when it's too late, to repair any credit issues. Of course, you may have a great down payment from the sale of your home, but other bills like credit card debt, auto loans, and student loans may need to be paid off so you qualify for the new mortgage payments.

Find out how much of a monthly payment and the down payment amount you'll need to buy the home of your choice.

Do the math. How much can you expect to net from selling your home?

1. Do you have a mortgage prepayment penalty that could eat up a significant amount of your equity?

2. Determine selling commission expenses. Can you sell your home effectively on your own or do you need to pay 6% of your selling price for a real estate agent's expertise?

3. Estimate your closing costs. Ask a local closing or escrow company for an estimated closing cost amount for a home in your price range.

4. How much work does your home need to ready the property for a top-dollar sale? Which upgrades or redecorating expenses make sense financially?

Consider all the expenses of selling, determine your actual profit, match that amount to your down payment, and see how much of a home you can buy with your qualified monthly payment amount. After you do your math homework, you'll be ready to think about selling your home. Don't get caught like this young family and be forced into a lesser home.

Copyright © 2005 Jeanette J. Fisher - All Rights Reserved Worldwide.

Article Source: http://www.articledashboard.com

Jeanette Fisher helps home owners create homes for glorious living and top-dollar sales. She teaches Design Psychology and real estate investing. Jeanette is the author of many books including "Sell Your Home for Top Dollar--Fast!" and "Credit Help! Get the Credit You Need to Buy Real Estate." For more information on Design Psychology, see designpsych.com/

Free Design Psychology for Selling Houses report sellfast.info/

Free "Credit Tips for Mortgage Financing" eBook
recredithelp.com/

Spam emails More free articles

More related feeds

5 Tips and 1 Important Warning for First-Time Home Buyers | For ...
Don’t expect the seller to give you a 50 percent discount on a good property. WARNING! The “Red Shoes” Experience Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, ...

Home Sellers Warning
If you’re thinking about selling your home and moving up, do your homework before offering your home for sale. Read the following story to see what can happen to home sellers who don’t do their math. A young family sold their home in ...

MIGHTY BLOGS - Warning to all Christmas Shoppers
The seller was so enraged at being investigated he sorted out the problem almost immediately. I don't suppose he will be agreeing to sell me anything else anytime soon, but I wouldn't be buying from him again, in any case! ...

BloodhoundBlog.com | Latest Findings From the Buyer, Seller ...
Learn more about who’s buying homes today and what they’re looking for in a sales professional in an NAR Research analysis based on the latest NAR Profile of Home Buyers and Sellers. Bookmark this to: del.icio.us • Digg it • StumbleUpon ...

Home Sellers Warning
Home Sellers Warning by Jea.

Peace in the Middle East - Change.org: Hebron Settlers Evacuated ...
By law, if someone lives in a house more than 30 days unchallenged, they have certain rights to the residence and cannot be easily removed, but in this case, the owner/seller appealed to the police on the same day of entry and declared ...

"WARNING" Home sellers don't fall for this scam!
Since we guarantee all maintenance on the house, it is in our best interest to ensure that our tenant/buyer will take care of the home and eventually secure financing to cash you, the seller and us out. This means that we put our ...

WARNING Home sellers don't fall for this scam
"WARNING" Home sellers don't fall for this scam! Here is the latest way people are trying to profit from others misfortune. The following was actually sent to me about a house I have listed. They obviously did not realize they where ...

BloodhoundBlog.com | Unlocking the scenius of BloodhoundBlog ...
7, 2007: Doing an appraisal and an inspection in advance could swing the balance toward home sellers in Phoenix · Aug. 31, 2007: What can home sellers do differently to get their houses sold int he current Phoenix real estate market? ...

Perfect choice the Home Based Business | Article Directory - The ...
Here are some top choices in home based businesses that many people are pursuing and making money from right now. Ebay seller: This job is just want the name implies.One sells things on Ebay for earning. The choices of what you can sell ...

Home Sellers Warning

Related articles