Practice makes perfect, right? Homebuying for a second time can come with some slight changes in the process, as well as lessons learned from the first time around. What exactly changes for a second-time homebuyer, though?
Here are some of the ways your experience may differ.
Selling Before Buying
When buying for the second time, you'll want to have a plan in place in the event that you sell your current home before you've found and purchased your new home. This might include an agreement with your buyer that your family is allowed to rent back the property for a certain amount of time, or you might line up temporary housing (such as a month-to-month rental property) to stay in the meantime. Just ensure you have a plan in mind before you start the selling process.
Sourcing Your Downpayment
Unlike your first time homebuying, your second time will come with a potential influx of funds to go toward your downpayment—the proceeds from your home sale. While it may amount to more or less than you'll need for a downpayment on your new home, it can be a big financial help that you didn't have access to the first time around. Beyond this source of money, you can receive downpayment assistance from SDHDA to cover the difference. Click here to learn more.
MAnaging Moving Dates
Your first time buying a home, you may have experienced a relatively uneventful move—your timelines are set out very clearly in closing, and you know the limitations of any rental property leases in which you're engaged. The second time homebuying, there is more variability with these dates, as you're managing selling and buying simultaneously. This means that your moving process should be well planned out ahead of time to accommodate a potentially quick turn-around in your buying-and-selling timeline. Box up as much of your belongings ahead of time as possible, and have a clear plan written out for moving day.
Here's a benefit to being a second-time buyer—you know more about homebuying. Since this isn't your first time, you have connections with potential real estate agents and lenders already, and you know potential pitfalls that you didn't consider the first time—whether it's structural defects of a property, budgeting strategies or pros and cons for searching. Use this knowledge and these connections to your benefit for a smooth process the second time. If finding the ideal loan is part of your strategy, click below to find out more about SDHDA's Repeat Homebuyer Loan program.