Whether it’s a need for more space, a new neighborhood you’ve set your sights on or home upgrades you’d like to make, buying a home the second time is bound to happen sooner or later. Here are some common tips for repeat homebuyers when they’re getting back into the buyer’s market.
Investigate the Market
If you bought at the “right” time or not the first time around, you have an opportunity on a repeat-homebuying experience that you didn’t before. You can price-compare, trend-compare and time out your home sale and home purchase for the ideal time of year. Look at how much other neighboring houses are going for at various times of year, and determine if your sale price will likely be enough to fund your next downpayment and/or first few months’ mortgage payments.
It’s Okay to Be Picky
Your first time buying, you may have been a little more willing to give up certain needs and wants. Some of them you may not have known you had at the time, but living in a home makes you a much savvier buyer and far more likely to look for details and features you didn’t bother with previously. This is okay. As a current homeowner, you’re in a position to be choosy about your second home purchase. Do some searching and wait for the right fit—it’s okay to stick to your dealbreaker list.
Depending on your life and career situations, you more than likely are earning more money now than you did when you purchased your first home. When you are prequalified for a mortgage, you may be offered more lending power than you did the first time around. This doesn’t always mean you should take all of the available funds offered—always first balance your budget to see what sort of monthly payment is feasible for your household and then begin the home search. The full prequalification amount might not always be the right level of commitment for you.
Save for Upgrades
The second time you purchase a home, you may have the potential to expand your living space and allow room for growth. Just remember to not spend on furnishings and housewares too early. There’s no need to fill up your new space to the max the moment you move in. Remember that there are unforeseen expenses such as paint touch-ups, renovations and repairs that this money might be better set aside for.
Assistance in paying for your home isn’t just for first-time homebuyers in South Dakota—the South Dakota Housing Developmet Authority (SDHDA) Repeat Homebuyer Program was built to offer downpayment and closing cost assistance toward low, fixed-rate mortgages. Click here to learn more.