When you need a home loan, and your current house is on the market, there are some steps you can take to make both of these processes as easy as possible. This article will give you advice about dealing with two crucial situations: selling your current house and getting a new home loan.
Determine your Home’s Market Value
In the current market, your house is worth what a buyer will pay for it. While you may have your ideas about the value of your home, to get financing on another property or sell your current one, you must be realistic about how much it can fetch.
The best way to determine the market value of your house is to look at comparables. These are houses that have recently sold in the area, and they can give you a good idea about what buyers will pay for your home based on its size, age, condition, neighborhood amenities, and more.
Get Pre-Approved for a Mortgage Loan
This will give you a better idea of how much house you can afford and help protect yourself from taking on more than your budget can handle. You should always try to get pre-approved for a loan before looking at homes in the area. This way, when you find one that interests you, there is no need to delay making an offer.
In addition, getting pre-approved for a loan can be an advantage when it comes to selling your current house. If you have offers on the table from buyers who want to finance your home purchase with a mortgage. Still, they are hesitant because they don’t know how many houses they can afford and what type of property requirements will be on their loan; you can simply tell them that they are already pre-approved for a certain amount. This will give them peace of mind and may help to speed up the sale process.
List your house on the MLS with Photos and Video Tours
MLS listings are available to buyers who use real estate websites or apps to search for properties. If you want your house to sell quickly, it must appear on these sites so potential buyers can see what’s available in the area.
Make sure your listing contains an eye-catching headline, photos, and video tours of every room in the house. You may also consider hiring a professional photographer or videographer if you aren’t up for taking pictures yourself. Just be sure they know how to take quality shots and show off any unique features your home might have, such as an impressive view from one window or a cool architectural design element like stained glass windows.
Negotiate Offers on your House
If a buyer makes an offer on your house, you should consider the details carefully before accepting. Does it seem reasonable? Is there room for negotiation?
Keep in mind that buyers will expect to negotiate, so if you have set a price without much wiggle room or your home isn’t selling as quickly as anticipated, this may be an opportunity to lower the asking price. Make sure they understand all of the steps necessary for closing, such as inspections and appraisals. This way, if they are willing to make an offer with the expectation that these will be taken care of before closing day, you know they have done their homework.
Close on the Current House before Buying the New House
There are many advantages to closing on your current house before buying a new one. For example, you can use the money from selling your old home to offer the property of your dreams. Then, when it is time for final walk-throughs and inspections before the closing day with both houses, this will be done at once, so everything goes smoothly.
If you can, try and align the closings on both your current and new homes to save money. For example, if they occur on the same day or within a week, this is essentially like getting one closing done at half price! If this isn’t possible due to time constraints, be sure that everyone involved with making decisions about financing is aware of all dates. Hence, there aren’t any misunderstandings later down the line.
Selling your home can be a stressful process, but it doesn’t have to be. With the right home selling strategies, you can make your house more appealing and ensure it will sell quickly. Interested in learning more about home financing with bad credit home loans? Click here.