Try to estimate what will have to be repaired or replaced within that time period.
We Buy Houses | Centre PA: Selling a house in a market such as we are experiencing today can be discouraging. If you must sell, there will be a great loss in your equity. If you don’t need to sell now, it might be best to wait until you can recover some of that equity you worked so hard to pay for.
Determine whether or not you need to sell now. Take a look at your goals for the upcoming 5 year period. Then stretch the goal into a 10 year goal. The questions you should ask yourself are about where you wish to be financially at each of those milestones and whether your current home will be able to support your lifestyle at that time. For example, if you plan to have 2 more children in the next 5 years, will your house be adequate, or too small?
“In your research you’ll want to explore what your options will be for home loans.”
Try to estimate what will have to be repaired or replaced within that time period. Calculate the projected costs of those improvements. Figure in mortgage costs, as well as any increase in your mortgage payment that you foresee. Now compare that with what you calculate to be your costs of repairing before you sell, your moving costs, selling expenses, and what it will cost you to purchase or rent your new home. This will give you a fairly good idea of whether or not now is the right time for you to sell. Many people today are discovering that staying put for a few more years will be to their advantage financially.
In your research you’ll want to explore what your options will be for home loans. It will most likely be different than what it was when you bought the home you own currently. Banks and lenders have tightened up their requirements, and you will need a down payment and solid job or other income. The good thing is that there is a possibility that you have paid on time in your current mortgage and have therefore improved your credit score considerably. That translates to dollars and cents where mortgages are concerned. The better your credit, the lower your interest rate. If you are in financial trouble, one of you or both have lost your jobs and are finding it hard to get another job, or your adjustable rate mortgage reset and you can no longer afford the payments, it might leave you no option but to sell.