3 Tips for Second Time Home Buyers
Are you planning to upgrade from your current house into a larger dream house? If yes, then you must have fewer questions than the first time homebuyers. Having said this, we don’t mean that buying a second home is not a daunting task, but it comes with its own set of considerations specific to second time home buyers.
Thus, to help you smoothly navigate the second time home buying process, here are some tips for you!
Don’t Forget To Save For the Down Payment This Time as Second Time Homebuyers
Let’s start by acknowledging the fact that saving up for the down payment is often difficult for the first time buyers.
But it is more of a disadvantage for second time homebuyers. The reason is that they are not eligible to dip into their IRA without penalty as this perk is only reserved for the homebuyers purchasing property for the first time.
Thus, the most promising way to save money for the down payment is to plan a budget. Also, you can also save from tax refunds, lottery winnings, large bonus checks and gainful outcomes from some recent activity.
Get Ready to Manage Two Mortgages
As we don’t live in an ideal world, the real world can be quite unpredictable. There is a good chance that your first house won’t be sold just as you planned it. This means that there is a possibility of making two mortgage payments in the coming month and your budget may not be able to handle that.
So, how can you avoid this situation? Well, the best way is to first sell your current house. This means going through the entire process and not just getting an offer. This strategy will help you address the uncertainty and you will be required to handle the logistics of searching for an interim place to temporarily live while you look for your next house.
Otherwise, you may also consider boosting the emergency savings that you can easily draw upon if you need to make two mortgage payments. Reserves always help, so wait for the right offer to show up rather than accepting a lower offer to avoid the hemorrhaging.
Make the Most of the First Time Experience
In addition to some unique challenges of being a second time homebuyer, this status also offers some advantages based on previous experience. You may notice that you have an edge over first-timers as you’ve already done it before.
In other words, your previous experience will help you around common mistakes. They will guide you to make decisions with more confidence and provide a good perspective to handle your emotions while dealing with the highs and lows of the entire process.
Undoubtedly, a second time homebuyer gets many advantages. Since they have already been down this road, they know what they should expect from this process.