8a. "Offsite" - Do you have a current home to sell?

First things first!  Do you need to sell your current home? 

If you’re not sure if you have to sell, you should talk to a lender about your options.  It’s not always cut and dry, there are ways to get creative and lending practices are always changing. Knowing your need to sell, versus your want to sell is an important factor in developing your build plan! 

If you don’t plan to sell your current home until a later time, it can greatly impact your ability to afford the new home that you want. 

Do you have equity in your current home that you will need for a down payment?

• You can sell your current home to release the equity to purchase your new lot and/or cover down payments.  That may mean moving twice..  but consider the offsets.
• You may be able to refinance to release cash toward for your new build project.  You’ll need to quality for this, so again, talk to your lender.  Remember that different banks have different programs, so this might involve talking to several lenders to find the right fit for your situation.

If you don’t plan to sell your current home, it may hinder the amount that you can spend on your next home.  Debt to equity ratios (how much to you take in a month versus how much you spend each month) will determine how much buying power that you have for your new home.  Lenders can help you calculate these numbers.  Even if the ratios are good, you will still need some cash to put down in different parts of the process.

If you decide to sell, you may need to get your house ready for market.  Talk to Overstreet about getting your home listed with our sister real estate company, Greg Overstreet Realty.  We’ll be happy to help you build out a calendar and discuss how you can overcome obstacles when selling with the intent to purchase something new.