Home Buying in 14221>Question Details

Sue, Home Buyer in Lancaster, NY

My home is total equity, needing to downsize. Have debt to pay off and credit not that great. where do I start?

Asked by Sue, Lancaster, NY Fri Feb 17, 2012

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Answers

5
Hello Sue,

Typically, the first step to purchasing a home is determining what you can afford by consulting a mortgage professional. However, unless you know the value of your property and what you may net from its sale, they will be limited in how much they can help you.

So, since you are looking to downsize and pay down debt, I would suggest the following steps as a possible course of action:

1. Determine the current market value of your property.
2. Estimate the amount of cash you may net from the sale of your property.
3. Calculate the amount you have left over after paying down debts.
4. Discuss what you are looking for in a new home.
5. Determine if we can find houses that meet your desired criteria and fall within your price range so that you may purchase in cash.

If it turns out that you are not able to purchase a house that meets your needs with the cash available from the sale of your current property, then you will need to consult the mortgage professional to see if you qualify for a mortgage that can help you make up the difference.

Please feel welcome to email, call or text me with any questions you may have or to schedule an appointment so I can meet with you to discuss your situation in more detail, learn about your current property and what you are looking for in a new home, and determine if I may be the right real estate professional to help you through the buying and selling processes.

Thank You & Have a Great Day!
Danielle

Danielle Buchbinder
Licensed Real Estate Salesperson, RealtyUSA - Williamsville
Web Reference: http://www.771-BUY1.com
0 votes Thank Flag Link Fri Jul 19, 2013
Home exchange with an investor may be an option. Depending on the amount of equity and the downsized house you want.

Selling your current house and Lease-to-own another house is another way. same goes with seller financing.

I am an investor with an investor group, send me your questions if you want to know more.

Dan
0 votes Thank Flag Link Wed Jul 25, 2012
Speak with some local Realtors about marketing your property and finding you a smaller space. This seems like a 1031 exchange. You will be downsizing so use the extra equity from your first home to pay off your current debt. Keep your future debt in check & have your accountant explain the time frame for a 1031 exchange.
0 votes Thank Flag Link Fri Feb 17, 2012
Start by interviewing Realtors and obtaining opinions of price. Speak with several Realtors until you get a middle ground on what potential proceeds of sale will be.

Having that number, will probably answer a lot of questions for you. Please remember, you will be paying your attorney, your Realtor and transfer tax.
0 votes Thank Flag Link Fri Feb 17, 2012
If purchasing with a mortgage, begin by visiting with any licensed loan officer to determine qualification; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously; also choose an agent to work with.
0 votes Thank Flag Link Fri Feb 17, 2012
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