Are you finding it difficult to keep up with all your bills, along with maintaining your home? If so, there are many things you can do to pay off debt. However, many include you taking out more loans with high-interest rates. Being a homeowner, you are probably thinking that there has got to be a better solution than that? Fortunately, there is.
You can sell your home for cash.
This way you can use that money to pay off some debts and buy a smaller home. Downsizing can save you a lot of money now and in the long run. If you get a house at a steal price, you can greatly reduce your mortgage. If possible, you may even be able to buy that home for cash.
How Do You Downsize?
To downsize your home, you need to start by doing 2 things. First, you are going to need to sell the house and/or property you own now. Then, you will buy a cheaper one. If you do choose to downsize, you will benefit both financially and with the manner in which you live. Having things more affordable can benefit your life in so many ways.
Many people try to finance their new home and put their current home up for sale. It sits on the market for months, or even years, or maybe it doesn’t even sell at all. If this happens, you would fall further into debt. Why not choose to downsize to a more affordable home? Then, you can sell your home for cash and use that money to purchase a more inexpensive home.
What Are Some Downsizing Challenges You Should Be Aware Of?
If you are thinking of downsizing your home, it can be beneficial to learn about the possible challenges you may be faced with. There are different challenges that you might face depending on the exact situation that you are in.
One of the main challenges that you might face is not being able to get a mortgage for a new home because you are still responsible for your current home. In order to get a mortgage, you would need a lot of cash on hand and a great credit score, as well. Even then, some lenders won’t work with you.
If you don’t have the credit score and cash needed for this, downsizing may seem quite difficult. However, there is another option. You could choose to sell your current home for cash. This way you can take that cash and invest in a new home. Depending on which home you decide to buy, you may be able to pay for it outright with the cash you get for your current home.
You may also be faced with the challenge of your home not be worth what you expected it would be. You may also owe more on your mortgage than what that home is worth. If you are in this situation, selling your home for cash can allow you to pay a large chunk on your mortgage. Then, you can make payments to your mortgage while moving to an apartment. Many people find that apartment living is appropriate for their family. This may be a route that you want to take, as well.
Make a Plan to Downsize You Home
Now that you have a better idea of some of the challenges that you could face with downsizing, you can make a plan that works for you. Some of the things that you should do include:
- Going over the numbers – How much do you owe on your mortgage (if anything)? If you don’t owe anything, how much would you need to buy a house that works for your family? Could you accept an offer under a certain amount?
- Call Valley Cash Offers – Give them the information on your home and let them start the process of giving you an offer for your home. If you have done any recent remodels to your home, be sure you let the professionals at Valley Cash Offers know about this. It could increase the offer they place on your home.
- If you haven’t already, start looking for homes or places to move into – This way you have an idea of where you want to buy or place an offer.
- Assess the offer – Once you have the offer from Valley Cash Offers, decide if you will continue with the process. If you want to continue with the process, let the professionals at Valley Cash Offers know and they will proceed.
- Accept the offer – If you have accepted the offer from Valley Cash Offers, you can decide whether you want to buy another home outright or if you want to place a large chunk down on a home and finance the rest. Buying a home outright would leave you without a mortgage, so that is 1 less payment you have to worry about.
Conclusion
These are some of the things that you should do if you plan to downsize. Moving to a smaller home can help you to save money on utility bills. It can also help you to better maintain your home, as well. In addition, downsizing can reduce your homeowner’s insurance rates, taxes, maintenance costs, and more.
Downsizing can be the best option for you and/or your family. If you are currently living in a home that seems to be too much for you, downsizing could be best. For instance, if all your children have moved out of your home, you may not need to keep living in a 3 or 4 bedroom home. You could sell your home for cash and move into a 1 or 2 bedroom home instead.
If you live in the Central Valley, anywhere between Fresno to Stockton, such as Modesto, Call Valley Cash Offers today to get an offer on your home. The offer may be just what you need to downsize your home and live more affordably. After you downsize, you can see just how much money you can save with a smaller home. You can also see that a smaller home can feel more welcoming and manageable than the larger home you are currently living in.
Seth Choate is a Real Estate Professional from Turlock, CA who’s obsession, beyond helping the community find homes and deals that best fit their situation, is becoming his best self. He enjoys challenging himself with 5K runs, and finding news ways to exhibit infinite love for his beloved wife and children. A man of faith, Seth believes that good things come to those who work hard with honesty and put integrity first.
