Page 20 - Downsizing
P. 20
12.FUNDING YOUR
FUTURE
Many people don't realize much their house sells for first, or
that it's important to get pre- they simply presume they'll qualify
approved for a mortgage on for a mortgage in the amount they
their next home before they want or need.
even begin to sell their
current house. The last thing you want to do is put
your house on the market and accept
If you have enough cash to buy
an offer, only to learn you don't
whatever you want outright, there's
qualify for the amount you want or
no need to do this. (Nor is there as
need. So make sure you speak with a
much concern about trying to time
lender or two prior to putting your
the sale of your house with the
house on the market.
purchase of another one.) But most
people need the proceeds of the They'll want to know how much your
house they will sell in order to qualify house will probably sell for, and you'll
for a mortgage and buy another one. need to give them an idea of how
much you owe on it. They'll be able to
You shouldn't wait until your house is
pre-qualify you or even give you a
under contract to make sure you can
conditional pre-approval. (Note: pre-
qualify for another mortgage. That's a
approvals carry more weight than
mistake many people make. They
pre-qualifications, but that's another
think they have to wait and see how
booklet).
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