Buy A Home Or Remodel?

While much of the country is fixated on the problems of the overall housing market, many people are facing a much more personal issue - what to do with their own home when a change is needed. Whether it is the birth of a child, an elderly parent moving in, a job change, or just time for a change, making the decision to move or remodel is rarely an easy one. With the overall housing market not as healthy as it was a few years ago, the questions move beyond the number of bedrooms, the local schools, and local amenities. One must consider how long it may take to sell the home, especially if the needs are pressing. Additionally, will there be improve­ment projects to complete that would make the house easier to sell. Remodeling has its own set of questions, including how long you might need to stay in the home to recoup the investment from a major project.

Whether remodeling or moving is in your near future, some significant mortgage analysis will be required. Two of the most important issues will be the equity in your home and your credit situation. Generally, the more equity in your home, the greater your options become. Your home's equity can be accessed for a remod­eling project either though cash-out refinancing of your current mortgage or a second mortgage or line-of-credit. When selling and buying a new home, your equity can be used for your new home's down payment and closing costs. Your credit situation will impact what type of interest rate you'll pay, how much you can borrow, and the type of loans you should consider. Given current market conditions, an honest and thorough analy­sis of your financial situation should be completed before you get serious about moving or remodeling. Please give me a call to schedule a time for us to meet. I'll help make sure that you understand all the financial options available to you.

Paul Cantor is frquent speaker on local real estate financing issues and may be reached at (804) 433-1510 or at www.PaulCantor.com .