Hal's Mortgage Blog

Maybe you’ve thought about moving up to a larger home but are unsure if now is a good time. The catch – you have to sell your current place first. After all, the market is a little soft right now and your chances of getting top dollar are slim.

If it makes sense, now is a great time to make the transition. Look at it this way. True, you’ll make less when you sell, but your new purchase should be a bargain and the difference may more than offset the loss.

Using round numbers, if you sell your current home for $135,000, 10% less than you hoped for ($15,000) and you purchase another home at a bargain for $235,000 at a 10% discount ($25,000), you are $10,000 ahead of the game.

Here’s my advice before you proceed:

1. Talk to a good Realtor and get their idea of what you can expect to sell for in a reasonable time frame.

2. Don’t commit to another home until your current home is sold – unless you can afford two mortgages.

3. Make sure you can afford the payments on your new purchase. Get Pre-Approved by a Mortgage Professional