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First time seller/second time buyer question

1,033 Views | 5 Replies | Last: 6 yr ago by SteveBott
Pendragon12
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AG
I have some probably dumb questions for the experts/seasoned home buying vets on this board. I'm wanting to move to a different area of SA. I loved my house and neighborhood when I first bought it almost 5 years ago, but it was never a "forever" home for me. It seems like I'm going to be here long term for my current company and I'm just done with my current neighborhood, so I'm thinking about making the move probably in the next 6-8 months.

I guess I'm here to ask where do I even start?

I still need to wrap up a few little projects around my current house to make it even close to market-ready, so that's definitely step 1. Should I talk to a lender after that to see what kind of financing/price range options I should be thinking about? I have a ballpark number I would like to stay in, but I did absolutely zero lending research last time and I definitely regretted it. I would want to use my current home equity for my next house, so that complicates things I know. When's "too soon" to start looking? I'm sure there are some other questions I'm not even thinking of so any tips, advice, etc. that anyone would be willing to offer I would be happy to hear it.
SteveBott
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AG
As a lender I would say it's a tad early to work up the financial numbers but you can contact me if you wish. Contact info in my profile.

You would want to review options when the current home is ready to be sold but not listed. You would first try to be qualified for the new home while carrying the existing mortgage. I'm not sure how hot the market is where you're looking but most major markets are so hot contingency contracts are not being accepted. Houston maybe an exception.

I always start with payment and back in to how much to spend. Take sales price less down payment and figure 750 per 100k borrowed.
SteveBott
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AG
750 = PITI
Pendragon12
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AG
I was actually thinking of selling and renting something nearby short term, so not opposed to doing things a little differently. What are the rules in terms of not taking a tax hit if I went that route vs a contingent offer?
SteveBott
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AG
I'm not a tax guy but in general you can take 250k single or 500k family tax free from the sale of the home. So paid 200 and sell for 400 no tax owed. I believe you have to have lived in the home 3 of the last 5 years.
26.2
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You don't pay taxes on profits on the sale of your primary residence (up to $250k in profits if you are single and $500k if you are married) as long as you've lived in it for at least 2 of the previous 5 years.
SteveBott
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AG
Thanks. I could not remember 2 or 3. Like I posted I'm not a tax guy
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