Thanksgiving has arrived! It is not just simply about expressing gratitude to the blessings you have received in life, it is also the bonding you have
Are You Ready to Sell Your Home?
Dated: October 10 2019
Selling your home where you have lived in for years is probably one of the most difficult decisions that you will make in life. You don’t simply wake up and just feel like selling it. Even when opportunities or changes in your careers come that require you to migrate, you even think of this place, this sanctuary where you have made a lot of memories with. Thinking of leaving a house is not as simple as it sounds.
There are a lot of factors regarding this situation. The memories with the house will always give it a big splash of sentimental value. The amount of money we have invested in the house. Each factor will definitely make it harder and harder for us to let go of the house. Yet even if we are hesitant at first, we still reach the point where we really need to move out and leave this house.
Some of the reasons are not simply on our emotional state, it will also appeal to our financial state. You can’t sell a home if your wallet is not also ready. You cannot risk the fact that you will move out with no back-up budget in case an emergency would occur. Here are the things to check so that you can know that you are ready to sell your home:
- Equity, in lay man’s terms, is the difference between the market value of your home and the amount you owe the lender who holds the mortgage. It is the money you will receive after paying off the mortgage when you sell your home. This is basically the most important factor when thinking if you are ready to sell your home. Take note that if you can sell your home for more than what you owe from your mortgage, you will surely gain profits. This is not always the case but as much as possible you should always keep in track in paying your mortgage so when the time comes and you will sell your home, you would have positive equity. Negative equity, which means that the money you will get after selling your home is less than that of what you owe, would result in problems in your budget. And you would not want that to happen. But you cannot control your home’s value and the price range of it in the market. Another way to turn negative equity into positive equity would be by keeping check of your home’s value in the market. You would know if the trend would be favorable to you and if you see that your home’s value increased in the market, that would be the time for you to sell it so that you would not end up in negative equity. So, it will be better to monitor this factor firsthand. If you see that you will end up having negative equity, it would be better to think carefully if you will still want to proceed with selling your home.
- Credit Score
- After accomplishing selling your home, you have to make sure you have a good or even a strong credit score. This is a must because having a good credit score will aid you in the new mortgage you will be applying to. Some might say that this is not always the case, that it is not that important. But hey, look at this situation, applying for a mortgage with a higher percentage would mean you would be spending more monthly instead of having a low percent mortgage. Your credit score greatly affects this. You can also check out how loans are handed out and how they are affected by your credit score. You will see that this is not a simple thing to ignore.
- At the end of the day, when you move to your new home you would need a few weeks or even months before you settle in properly. Selling your old home did not come cheap because it still had to undergo home staging which was an additional cost for you but it was a necessary one. You would not want to forget that after leaving your old home, you will still need to apply for a new mortgage for the new home. Meaning you still need to have a back-up budget ready in case things go sour. So always make sure you have enough savings to get you through. Being prepared is better than drowning yourself in loans if you could have prevented it just by saving up.
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