Mortgage, Loans, Insurance, Real Estate, Investment, Tax and Financial Services

Home Sellers Warning for Young Families

If you're thinking about selling your home and moving up, do your homework before offering your home for sale. Read the following story to see what can happen to home sellers who don't do their math.

A young family sold their home in California, before they determined how to buy their next house. All they thought about was moving into a larger home for their growing family.

Two years before, after this young couple purchased their first home, they bought a minivan with payments and increased their credit card debt with home furnishings purchases. Then, the wife quit working to stay home with their baby. The family still had sufficient money to make all payments on time. They fell in love with a larger new model home in a nearby tract home development. The sales agent convinced them the new home would only cost them another $200 per month.

The family had no trouble selling their home. To qualify for the new home mortgage payment, they had to pay off the minivan, student loans, and the credit card debt. Out of their home sale proceeds, these payoffs left less than a 10% down payment for their new home.

Because of their changed income and low down payment, they didn't qualify for the new home of their choice. With only 5% down, the couple had to pay higher interest rates on a second to avoid mortgage insurance. Without the wife's second income, the total payment meant that they only qualified for a new mortgage for a home which cost less than the one they sold!

Before you put your home on the market, make sure you can buy the home you want.

Consider the following financial concerns:

Talk to a loan officer and check your credit. Don't get caught after selling your home, when it's too late, to repair any credit issues. Of course, you may have a great down payment from the sale of your home, but other bills like credit card debt, auto loans, and student loans may need to be paid off so you qualify for the new mortgage payments.

Find out how much of a monthly payment and the down payment amount you'll need to buy the home of your choice.

Do the math. How much can you expect to net from selling your home?

1. Do you have a mortgage prepayment penalty that could eat up a significant amount of your equity?

2. Determine selling commission expenses. Can you sell your home effectively on your own or do you need to pay 6% of your selling price for a real estate agent's expertise?

3. Estimate your closing costs. Ask a local closing or escrow company for an estimated closing cost amount for a home in your price range.

4. How much work does your home need to ready the property for a top-dollar sale? Which upgrades or redecorating expenses make sense financially?

Consider all the expenses of selling, determine your actual profit, match that amount to your down payment, and see how much of a home you can buy with your qualified monthly payment amount. After you do your math homework, you'll be ready to think about selling your home. Don't get caught like this young family and be forced into a lesser home.

Copyright © 2005 Jeanette J. Fisher - All Rights Reserved Worldwide.

Jeanette Fisher helps home owners create homes for glorious living and top-dollar sales. She teaches Design Psychology and real estate investing. Jeanette is the author of many books including "Sell Your Home for Top Dollar--Fast!" and "Credit Help! Get the Credit You Need to Buy Real Estate." For more information on Design Psychology, see http://designpsych.com/ Free Design Psychology for Selling Houses report http://sellfast.info/ "Credit Tips for Mortgage Financing" http://recredithelp.com/

Student loan consolidation with federal debt program
If you are a college student (parents please take note), this Federal Government program can help you cut monthly payments on your student loans. You can consolidate now and lock in a low fixed rate. When you consolidate student loans with a Federal Consolidation Loan, you not only can take advantage of these low rates, you can lock in that rate for the life of your loan. One easy process, one low fixed rate, one low monthly payment, one lender. This is a free U.S. Government program (no fees or other charges). Really Great Rate is an authorized agency for this program - you can check your eligibility in a minute or two, with no obligation

Home Equity Loans: Expert Tips and Advice
Get expert advice, tips, and timely information. Manage your own Real Estate and Investment Portfolio to generate an income so you can take control of your financial life and do the things you want to do.

MORE ARTICLES:

Bad Credit Mortgage Company - Recognizing Mortgage Lender Scams
Mortgage lenders recognize the value of owning a home. Because some people will not easily qualify for a home loan, several lenders have begun offering home loans to tailor a variety of needs. For this matter, bad credit mortgage lenders have gained widespread popularity. The majority of bad credit lenders are sincere in their efforts to help you finance a home. However, some lenders are only concerned about their profit, and will not offer the best rate and terms.

Mortgage Lenders Finally Slash Mortgage Rates | Mortgage Expert
In the wake of last weeks shock announcement by Bank of England of a 1ý% interest rate drop from 45% down to 3%

Loan Application Mortgage Rate Calculator for your Mortgage Loan
Are you thinking of purchasing land, a piece of property, or your dream house? Then maybe you have considered applying for a mortgage loan. If you have already decided that you are getting a mortgage loan, then let a loan application mortgage rate calculator help you.

Home Mortgage Lenders - How to Find A Good Mortgage Broker Online
Mortgage lenders have set up shop online, but they aren't all reputable mortgage brokers. To find a good mortgage lender you need to compare rates and research to find reputable companies.

A secured bad credit home mortgage loan comes with reduced interest rates
A secured bad credit home mortgage loan comes with reduced interest rates

Adjustable Rate (ARM) Mortgage Holders Should Refinance to Fixed Rates, Recommends the Katz Mortgage Team
Katz Mortgage Team, www.KatzMortgageTeam.net, of Amtrust Mortgage Corporation, has announced that Fixed Mortgage Rates are now at their lowest point in over a year. They are officially changing their recommendation from "HOLD" to "REFI" for many of their clients who took advantage of the extremely low adjustable rate mortgages of 2002 and 2003.

Mortgage Loans, Construction Loans, Refinancing Mortgage Rate
TheLoansStore.com was created with the interests of the consumer in mind. If you have ever wondered if owning your own home or refinancing your current home would be possible, dont wonder anymore. From new Construction Loans to Mortgages Loans, Bad Credit Home Loans and Refinancing Mortgage Rate. Whether you have great credit, marginal or bad credit, theLoansStore.com can help. We know one size never fits all borrowers.

Refinance Mortgage Rate and Mortgage Rates
Refinance mortgage rate is the best rate available to qualified homeowners for refinancing their current home mortgage. Refinance mortgage rates vary from product to product and customer to customer.

Newest Rate and Payment Mortgage Calculators for Home Loans from The Mortgage Store Online
The Mortgage Store Online (TMSO) today released its complete set of free home mortgage loan calculators on their website at themortgagestoreonline.com. These highly accurate mortgage calculators use current and true rate information to give borrowers the most realistic mortgage payment calculations.

Home Equity Loan Broker Awarded Preferred Mortgage Broker Status for Second Consecutive Year from IHE
For the second consecutive year, BD Nationwide Mortgage Company was awarded "Preferred Broker" Status from Irwin Home Equity for home equity loans and 125% second mortgages. IHE announced last week that BD Nationwide was extended this award for their exceptional level of expertise for home equity loan origination. The preferred status gives BD Nationwide a significant edge because they are one of the few mortgage brokers in the country who can offer large home equity loans to a 125% loan to value. Most lenders and brokers are restricted to $50,000 or $75,000 loan amounts but BD Nationwide is able to offer these high LTV second mortgages for loan amounts ranging from $100,000 to $200,000 to qualifying borrowers across the country...

Bad Credit Loan Mortgage Rate And The Good Lender
"Blessed are the young," says Herbert Hoover, "for they shall inherit the national debt." Debt, in whatever language or guise, is bad. But what if you've incurred debts and find it hard to dig yourself out of them? Does this mean you are forever disqualified from owning a home? Some would say yes. Bad credit loan mortgage rates show otherwise.

Low Credit Score Mortgage Refinance - Lock In A Low Rate With Bad Credit
Even with a low credit score, you can refinance your mortgage for a locked in low rate. Bad credit doesn't have to prevent you from saving money on your loan costs. The best way to find a cheap rate is to research loan offers online. But you can also improve your loan application with the following tips.

Cash Out Refinance Mortgage Loans – Home Equity, 2nd Mortgage or Cash Out Refinance Loan
There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan.

Affordable Bad Credit Mortgage Loans - 3 Tips to Reasonable Bad Credit Mortgage Loans
Finding a mortgage loan with a bad credit rating can be an absolute nightmare: Driving from broker to broker, bank to bank, getting turned down every time, all the while your credit keeps dropping with every credit check. Fortunately, this painful process can be avoided with just a few simple tips.