Move up plan

So you decided it’s time for a change of house. You’ve outgrown it, changed jobs or just want a change of scenery from the neighborhood you’re currently in… but now for the million dollar question, where will you get your down payment from? When you bought your first house, you’d probably been saving up & stashing away money to come up with the down payment. Maybe you had gift funds from a family member or you used a first time buyer grant. Now that it’s time to move up to another bigger, better home, you need to think about a down payment all over again. Now I know you’re probably thinking, well of course the down payment will come from my current home sale, but if that’s the case have you thought about how those logistics will work?
There is so much to think about when it comes to planning for a move-up purchase, the biggest of which is the source of down payment. For some, you may be lucky enough to have other sources of funds readily available, maybe even a full cash payment, but in most cases that I have dealt with, the down payment funds are  often  tied up in the equity of the current home. That means having to work out the details of the sale of your current home in order to free up the equity to use as a down payment for the new one. Now of course this all depends on the market at the time you decide to sell your house- if it’s fast or slow. So let’s get creative in thinking about down payment options because there are PLENTY! The more common ones are to talk with your favorite lender, or ask a Realtor to refer you to a good one! Lenders will have creative options you may not even know about- like a Bridge Loan. Then There’s Credit Unions that offer Loan Modification options for up to 3 or 6 months after closing.  You could borrow gift funds from a family member – just make sure to speak with the lender and follow their instructions regarding any gifted funds so you don’t have an issue with underwriting!  A commonly forgotten source of funds besides the equity in your current home is a short term loan from a retirement account which, always consult a CPA or tax pro to be sure it’s the best option first. Same goes for pulling from your money market or other long-term savings account that you generally don’t touch- they could be used for short term then refunded after the closing of your current home. Another option to that could possibly help is your tax refund…So as you see, there are other options out there besides just getting cash directly from your current home equity. No matter what the source of your down payment will be, you’ve got to look into all the logistics before you start to look at homes- like how long it’ll take to access the money in those accounts. That way, when you find that perfect new house you have a plan of action already in place and can move quickly on making an offer! If you’re wondering if this could work for you, let’s sit down together and go over your options because knowing your options is the only way to get the ball rolling. I’m Jessica with realm real estate ready to help you make that next move!