1. Will you build or buy?
There are pros and cons to each. New homes may be more energy-efficient, but older homes may have some unique charm; new homes may require less maintenance, but older homes may be more conveniently located. Make your choice based on the factors that are most important to you.
2. What’s your down payment strategy?
Your down payment will likely come from both the sale of your current home and savings you’ve built up. You can get help on the savings end with My Savings Plan®, a free online tool for Wells Fargo banking customers. This tool is designed to help you set and save for your goals, and digitally monitor your progress.
While you’re saving toward your next home, keep an eye on your day-to-day borrowing, too, including your credit card activity. Making payments on time and watching for any suspicious or fraudulent activity can help you maintain a solid credit history or even potentially improve your credit.
3. What’s your plan for selling your home?
If you haven’t sold a home before, it’s helpful to learn about the home-selling process. And it’s even more helpful (if you can) to learn about that process well in advance of when you will leave your current house and move to your next home.
Most sellers make repairs and even improvements to their house, townhouse, or condo before they put it on the market so that it’s more attractive to potential buyers. Like the repairs and improvements you made when you first bought your home, you should set and stick to a budget.
It’s also a good idea to find a real estate agent who can help price your home, get your property listed, and help close the sale.
4. What are your loan options?
Take some time to review the variety of loan options available to you, as the loan that you chose the last time you financed may not be the right fit for you today. Wells Fargo Home Mortgage offers several different types of loans at both fixed-rate and adjustable-rate terms, and can help you find the right one for your current situation. You can also compare loans to figure out your monthly payment, to make sure it’s within your budget.
5. Are you ready to house hunt?
One of the best ways to prepare for house hunting is to determine the loan amount and monthly payment to fit your budget. Requesting a Wells Fargo Home Mortgage PriorityBuyer® preapproval can help you make that determination. This preapproval letter lets you know exactly how much home you may be able to purchase.1 It allows your real estate agent to show you listed homes in your price range, and you can shop for homes with confidence, knowing you can make a serious bid on the home you want when you find it.