So we are hoping in 30-33 months to move and upgrade our house. We currently have a tiny 2 bedroom townhome and need to buy a bit bigger and closer to my husband's job. We bought this one without a 20% down payment, which I'm not beating myself up over, but I want to buy our "forever home" with at least 20% down. The thing is, there is next to NO advice out there on how to buy your 2nd home. First time homebuyers get all this help! So here is what I've gathered:
- Need earnest money (3% of new house), moving expenses ($2000), and home improvement ($5000-$10000) in cash
- Need realtor fees (6% of old house), closing costs (5% new house), and down payment (20% new house) minus the earnest money (3%) in home equity
So my situation is moving from a $300k to $600k home (I'm in Southern California). Looking for deals when we go to market aside, I figure I need:
- $18,000 + $2,000 + $10,000 = $30,000 in savings
- $18,000 + $30,000 + $120,000 - $18,000 = $150,000 in home equity
Is that how this works?