2020 is an excellent year to buy a home, according to market watch. Last year, experts expected the mortgage rates and the interest rate to rise for 200, but instead, they fell. That is good news for both home sellers and homebuyers. Sellers will be able to sell their homes and get a bigger profit out of it, while buyers would not have to pay for a considerable interest rate.
If you have plans on selling and buying a home both at the same time this year, this article is for you. Today, we will discuss some answers to the questions that you have in mind when it comes to doing both at the same time. Keep these things in mind before calling companies that say, “we buy houses in Tucson.”
Can I get a new mortgage if I still have an existing one?
It is possible to get a new mortgage approved even if you have a current one ongoing, but not all mortgage companies would be willing to lend you money with this situation in mind. If you want to get a bigger chance of having your second mortgage approved, it will be best to work on your credit score first.
You can get a free copy of your credit report so that you can see if your score and report is good. If you have other debts in the past, then make sure to pay those off first before applying for a second loan. If you have a bad credit score and your report is not the best one you’ve seen, there is a chance that your second mortgage loan would not be approved.
Can I afford two homes at once?
You might be looking to move into a new home, or you want to buy one for the sake of investment. However, you should consider only buying one if you know you have enough money in the bank.
You might get tempted to apply for that mortgage loan that your bank is offering you, but are you sure you can pay for it on top of the home that you are paying off now? Purchasing a new home involves putting a hefty amount of down payment and closing costs, and if your resources are not enough, you might want to rethink getting that second home.
What will I do with it?
Consider why you want to buy a second home. Are you thinking of moving? Maybe you are considering an investment. Or are you thinking about renting the place out for tourists or visitors?
No matter what your reasons are, you should make sure that all of these are valid when it comes to buying a new home. Buying a new home is a significant leap, and if you are not ready for it, it might be best to delay it.
What are my options in case of a break-in?
There might be some unforeseen circumstances when it comes to selling your current home and buying a new one. You would want to move into your new home right away. But sometimes, a break-in happens, and you might have to wait for a couple of months before you can move in. Make sure you have someone and somewhere you can stay in if ever this happens.
Ask your agent about the risks of selling and buying a home at the same time. They most likely have the answers for you since they have been selling houses for quite some time.