Your financial advisor or financial engineer will help you get your finances in order and ready for your next transactions as well as smooth the transaction when your house sells.
Moving house is exciting, especially if you are upgrading!
Getting a clear idea of your financial situation and arranging finance ahead of time can save you unnecessary headaches later on and let you focus your energies on house hunting.
In a market of tightening bank and mortgage insurance policies it is now even more important to have your financial situation fully credit assessed before placing your home on the market. Lenders servicing criteria and mortgage insurance policies have tightened in recent times so you can't assume you will be able to afford the property you want.
If you leave it too late to see if you can obtain finance approval you could find yourself in a bit of a bind if you are in fact unable to buy the type of house you had in mind.
If your home is priced right, you will hopefully sell quickly. However, if you sign a contract to sell your home, it is binding. If you leave it too late to see if you can obtain finance approval you could find yourself in a bit of a bind if you are in fact unable to buy the type of house you had in mind.
So what should you do before you list your home for sale?
- Get a realistic estimate of the value of your current home and plan for the reality that the actual sale price may be higher or lower. It's prudent to do your finance calculations on the lowest price.
- Ask us to help you calculate how much you'll actually walk away with (after bank, agent, and solicitor's costs).
- Get finance pre-approval to purchase your new home based on these calculations.
- Start looking at prospective homes and provide us with the maximum purchase price for the type of home you would like.
Your solicitor or financial planner or advisor can also help smooth the transition to your new home. It's worth touching base with your solicitor before you list your property to consider whether you should include specific clauses in your sale or purchase contract to suit your needs, eg:
- Settle contemporaneously (same day, most likely an hour or two apart).
- Make your new purchase subject to the sale of your existing home.
- Extend settlement time on your current home to > allow you more time to find a new home.
- Obtain early access to the home you are purchasing.
Once your house is sold, use our handy Moving House Checklist to make sure you don't miss anything.
Read the full article on Capital Finance - Moving House to take advantage of the many changes in the financial services industry. We also have available for free download, a great checklist to make sure you don't miss anything when moving house.
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