What All Second-Time Homebuyers Should Know

Since you’re already a homeowner, you’re an expert on buying a house, right? Yes, we all know that isn’t true — which is why it’s so surprising that there’s a real lack of information out there for second-time homebuyers. While buying a home for the first time can be a stressful experience, it can be even more so when you do it the second time. Not only do you have to worry about the closing process on your new home, but you also have to figure out what to do with your current one. If you’re getting ready to shop around for your next home, then here is some great advice to help you through the process.

Understand your current needs

The pandemic has changed how many of us live in our homes. Suddenly they have become the center of our universe. Not only do we spend our non-working hours at home, but many of us now use our homes as offices and schools. Just as it was important to evaluate your needs when buying your first home, you should re-evaluate your needs when buying your second one. Do you need more room? Is an outdoor living space more important? Are the suburbs calling your name? Make a list of your needs and wants so you can tailor your search to homes that fit those criteria.

Think about the future

We know it’s hard to think about the future when our current needs are so pressing. But the future will come whether we like it or not. Even if you think you may live in your second home for a long time, you should still consider its resale value. Buying a home is a huge investment and wealth-building opportunity. Set yourself up for financial success by purchasing a property that will be desirable to potential buyers down the line.

Know your financing options

Financing your second home is definitely one of the biggest things you’ll need to contend with. First of all, decide how you’ll make your down payment. Some second-time homebuyers rely on the sale of their current home to make that payment. But if you’re not selling at the same time that you’re buying, you’ll need to come up with another plan. Try to have at least 20 percent of the purchase price saved so that you can avoid paying PMI (private mortgage insurance). Secondly, you should also be aware that FHA loans are available to second-time homebuyers who meet the requirements.

Strategize what to do with your current home

This is also a biggie for second-time buyers — what will you do with the home you currently live in? Will you try to sell it at the same time? Will you hold off until you’re purchase is complete? Or will you hang onto the property to use it as a long-term or short-term rental? There are many things to consider, including whether or not you can shoulder two mortgage payments a month. 

Work with an expert

Finally, the best piece of advice we can give is to work with a professional when buying your second home. The experts at Agent inc. have worked with many second-time homebuyers and can help you navigate the process more easily. Contact us today at 949-791-8160 or [email protected]. Let’s open your world to new possibilities — together!