Monday, November 14, 2016

“House Hopping” and How to Do it the Right Way


There is nothing more exciting than buying a new home. Of course, if you already own a home, typically you’ll want to sell that one first before you make any offers. Don’t worry too much, though, it’s a “seller’s market” right now because property inventory is quite low. Plus, if you can follow some basic financial tips, you can typically sell your old home and get a nicer, newer one with no stress or hassle!     



Tip #1: Make A Contingency Offer

First of all, consider making a contingency offer when you are looking at potential new homes. That simply means that any offer that you make will be contingent on someone buying your home.That way, you won’t get roped into something you can’t afford on the off chance that your home doesn’t sell as quickly as you might hope.

Most sellers will gladly accept a contingency offer as long as you can demonstrate that there is a very good chance that your home will sell quickly.

Tip #2: Consider a Bridge Loan

Another thing you may want to think about is trying a bridge loan. This can be especially useful if you’re eager to get into a new home quickly but are still working on selling your old one. These loans are simply short-term loans that use your old home as collateral. This will give you money that you can use to purchase your new home, and then, when your old home sells, you can quickly and easily pay off the bridge loan.

Of course, this option will only work if you have enough equity built up in your old home and if you are otherwise able to qualify for a loan. If you can meet those qualifications, though, and if you can swing two mortgage payments for a short time, you should be all set!

Tip #3: Don’t Forget Deductions

Finally, no matter what route you choose to get out of your old home and into a new one, don’t forget about the many deductions that exist for people in your situation.You can get a deduction for interest paid on your mortgage, interest on loans for the purchase of your new home, on property taxes, and more. If you’re making this literal move, talk to a financial adviser to learn about any and all deductions you can qualify for to help enable your dream to come true while still sticking to a budget.


As you can see, it’s very possible…and even easier than you might have thought…to get out of your home and into a new one, especially if you can follow these simple tips.

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