Step One: Get Pre-Qualified
No matter where you are in life – when it comes buying a home, there’s absolutely nothing smarter than getting pre-qualified for your mortgage loan.
It should be everyone’s first step. It doesn’t matter if you’re a first-time home buyer or an experienced homeowner with a winter home overlooking the bay in Kailua, Hawaii.
When it comes to real estate, it’s just smart to start with the numbers.
Getting Pre-Qualified
- Provides you with a valuable outside perspective on your finances
- Determines how much you can afford to borrow
- Helps you focus on a specific price range when house hunting
Beyond Pre-Qualification
Plot a clear path on how you’re going to finance the purchase of a new home while selling your current home. Work with your lender on:
- Calculating your current home equity. This is a good starting point and essential for figuring out how much home you can afford to buy.
- Setting up a home equity or bridge loan. This type of financing will help you cover the earnest deposit, down payment and closing costs on your new home.
- Applying for custom home financing. If you plan to design and build a custom home, then lot loans, construction loans and construction-to-permanent loans may be needed to finance your trade up. Find out if you qualify.
Moving Your Money
When you think of moving, what springs to mind? Hiring movers and packing up all your stuff? Keep in mind you’re also moving your money. You’re taking your equity out of one property and putting it into another.
Plan thoroughly for this financial move and, while you’re packing and unpacking all those boxes, you can rest easy knowing your financial house is in order.
Home Buyer's Guide to Trading Up
Jan Stoldorf is a Vice President at Heartland Bank and serves as the Branch President of the Geneva and Shickley Branch. She has been an associate at Heartland Bank since 2002.
