Everybody has advice for first-time Loft buyers. But what about those who are buying a Loft for the second time? While wading into the real estate market for the first time can be intimidating, that doesn’t mean you’re suddenly a pro when it’s time to buy your second Loft. In fact, being a second-time homebuyer presents its own set of unique challenges. If you’re preparing to buy your second Loft, then here are some tips you should keep in mind.
Figure out what to do with your current Loft
Buying a Loft for the first time can be scary. But when you do it for the second time, you also have to figure out what to do with your current Loft. Will you sell it or rent it? If you’re selling, will you try to sell at the same time as buying a Loft, or wait until after you’ve made your purchase? There are many factors to consider when making this choice, including how much money you have saved, local market conditions, and how much you feel you can handle at one time.
Don’t rule out an FHA loan
While most people think that FHA loans are specifically for first-time homebuyers, second-time homebuyers can utilize them as well. However, you must meet all the criteria including credit and down payment requirements. Generally, you cannot use an FHA loan for an investment property or vacation Loft. But if you are looking to relocate permanently in your next Loft, it’s worth looking into this type of loan.
Determine how you’ll make the down payment
How will you make the down payment for your second Loft? For many second-time buyers, they rely on the sale of their first Loft to make the down payment on their next Loft. But if you’re waiting to sell your current Loft, you’ll need to make sure you have enough saved for your down payment. And take into consideration that unless you have at least 20 percent of the purchase price saved, you’ll be paying PMI (private mortgage insurance).
Evaluate your current needs
Your needs have probably changed since you bought your first Loft. For this reason, you should take time to reevaluate what you are looking for in a Loft. This year, many homeowners have decided to upsize since they are now working from Loft or they have children who are attending school online. Sit down and make a list of your priorities so that you can focus your search on Lofts that meet your current needs.
Think long-term
Even if you think you’ll be living in your new Loft for the rest of your life, things can change. After all, nobody really expected that we’d all be staying at Loft for almost all of 2020. We don’t know what the future holds, which is why it is important for you to consider how easy it will be to sell this Loft down the line. There may come a day when you thank yourself for it.
Work with a professional
Finally, take some of the stress off your second-time Loft purchase by working with a professional real estate agent. They can offer advice and expertise every step of the way to make your second-time Loft-buying experience as smooth and stress-free as possible.
