Real Estate Newsletter - February 2005
Page Two - Moving' on Up? (continued)

Write the total payoff figure on the right side of the page.

Repeat those steps for any second mortgage or home equity line.

Now you need to call your friendly neighborhood real estate agent so you can learn two things: how much your home is likely to sell for and how much you will net from the sale. Your agent cannot determine your net without knowing your mortgage payoff, which is why you got that information first. Your agent won’t make a big production out of it. You’re doing research. They understand.

Write down how much you will net on the right side of the page. If it isn't a positive number, you probably shouldn't move unless you have to. If the number is positive, continue with your research.

The next step is to call a mortgage loan officer. Not to apply for a loan (though you can get pre-qualified or pre-approved if you want), but because you need to know how much cash it will take to buy a new home. You need to know the down payment, closing costs, prepaid items like homeowners insurance and property taxes, and 30 days prepaid interest (everyone forgets the interest).

Remember, you’re not shopping for a loan right now. You are deciding whether to move or not. You don’t want the “best case” deal…you want the “worst case” possibility. The most it might cost you under different down payment scenarios. You want your lender to include inspections and stuff that might not normally be in a Good Faith Estimate.

Then you need to know how much it costs to move.

If you’re thinking of hiring a traditional moving company, there are moving calculators on the web that will estimate your moving expenses.  There are other options, too, and you can get an estimate by making a simple phone call. Your real estate agent or loan officer will know local options and companies you can call.

Just in case you’re thinking you don’t know which real estate agent contact us.