In a fast-moving market, sellers can be caught off-guard when their St. Cloud listing turns into an unexpectedly quick sale. That might sound overly optimistic, but most people who are preparing to list their homes are so focused on preparing the property that they put off worrying about what happens once Job One is accomplished. Yet the downside to being caught unprepared can lead to awkward (and expensive) consequences.
Getting the place ready for the listing photos—and after that, preparing for the first showing or open house—tends to command a lot of attention. It’s no surprise that many an average St. Cloud home seller doesn’t see the need to focus on what will happen after the sale. But a “that’s the kind of problem I hope to have!” attitude is a misstep—particularly when it comes to the financial details.
This is particularly true for sellers who plan on an immediate move to their next house—either one you already have your eye on, or one you plan to seek out once you find a buyer for your current St. Cloud home. It’s easy to be lulled into complacency since common sense would seem to indicate that financing your future residence will be a snap. After all, any existing loans will be paid off at closing, a substantial amount of extra cash will become available at the same time, and your credit score should reflect those admirable financial accomplishments including a happy ending for the last home loan lender. How could there possibly be a hitch when it comes to financing a new place?
Well, there shouldn’t be (but those can become some of those ‘famous last words’). Fortunately, to prevent any irritating unexpected (and undeserved) financial SNAFUs, it’s only necessary to take a couple of preventive moves:
First, check on your current credit score. As you know, all three of the credit reporting agencies are legally obligated to let you see your report details as they currently stand. Don’t assume no misreporting has crept into your score—they can appear at any time. And since it can take at least weeks (and often months) to correct, the right time to check is before your St. Cloud listing hits the market.
Second is something that can prove to be a godsend if your St. Cloud home sells immediately to buyers who need to move in quickly. Simply do the same thing your buyers may already have benefitted from—secure a lender’s pre-approval. Although it will be contingent upon the sale of your St. Cloud property, it will still signal to the next home’s seller that you are a VERY serious and prepared buyer. If you find yourself vying with others to land that next home, that can make all the difference. If, on the other hand, you find yourself scrambling to get the paperwork in order at the same time you are closing on the first property, unnecessary tangles could develop.
Part of my service includes helping my clients foresee upcoming events. Whether buying or selling (or both), I hope you’ll give me a call!
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