Purchasing a home has long been considered a hallmark of the American dream. For most buyers, their home represents the largest investment that they will ever make.
These days, purchasing a home is rarely a one-time event. Instead, homeownership occurs in a series of phases that often mirror the stages of life – starting out, growing family and empty nest.
Regardless of where an owner is in the cycle, there are always factors to consider before making any move. To help understand the issues that arise in buying and selling properties, Hendersonville Lifestyle reached out to local Home Loan Specialist Joey Murphey at Churchill Mortgage to gain some professional insight.
First-Time Buyers
Budget
“Looking for a home is fun, but buyers must still deal with economic reality. It is important to create a realistic budget and to have an emergency fund prior to the purchase.”
Employment
“Having a stable income is critical when applying for a home mortgage. Income is a key factor in attaining loan approval.”
Location
“Location is everything! Buyers should make certain that they intend to live in their chosen neighborhood for a while before purchasing.”
Down Payment
“Once buyers have a budget, it’s time to save for the down payment. Typically, a 20% down payment is required. However, there are options available for first-time buyers which permit lower down payments."
Mortgage “No Nos”
“Do not take out any new loans, make any major purchases or cosign for anyone else during the mortgage application process.”
Upscale Buyers
Buy vs. Sell First
“Move up buyers face a tough decision in terms of the timing of their transaction. If they sell first, they risk losing out on their desired new home. However, if they purchase the upscale home first, they run the risk of having two mortgages to pay until they can sell their first property.”
Know Your Home Value
“Attaining an accurate valuation on the worth of an existing property is crucial to determining the feasibility of moving to an upscale home. Realism is the key here – homeowners must not be overly optimistic nor pessimistic.”
Evaluate Financing Options
“It is crucial for up-scalers to know that they have the financial flexibility to put an offer on a new home before selling their existing home unless they choose to sell first.”
Create a “Love It, Hate It” List
“One of the best ways for homeowners to determine their needs is to create a ‘love it, hate it’ list. This list should include aspects of the home that the owners enjoy as well as things that they would like to change. The list should be prepared for both the current home as well as the prospective upscale property.”
Downsizing Buyers
Space vs. Belongings
“Many times, homeowners decide they have gotten tired of home maintenance chores and expenses. At the same time, they realize that they no longer need as much room, and they begin to think about moving to a smaller space. When considering downsizing, it is also the perfect time to declutter.”
Where to Go
“After deciding to downsize, homeowners must evaluate the properties that best suit their needs. Some buyers opt for condominiums, where they can enjoy single-family home life without dealing with maintenance. Others are drawn to the carefree lifestyle of active adult communities. Older owners with medical issues are often best suited for more advanced assisted living centers.”
Financial Implications
“In many cases, downsizers can sell their existing homes for considerably more than the purchase price of their new destination properties, resulting in a nice nest egg. Furthermore, moving to a managed facility can eliminate many routine homeownership expenses, resulting in even more savings.”
Churchill Mortgage
16 Executive Park Drive, #200,
Hendersonville, TN 37075
615.767.5251
“My job is to help families get into homes. It is an incredibly important endeavor that I am proud of and serious about.”
Joey Murphey
