An important factor in the equation that determines your buying power is how much cash you are putting up as a down payment and towards closing costs. To review here are the typical closing costs charged to the buyer but like almost every part of an offer are usually negotiable. (insert link to fees).  The best mortgage interest rates are available to those who put down payments of 20% or more. If you put down less you may have to settle for a higher mortgage rate or paying private mortgage insurance. Unless you are a saving fanatic, chances are that the bulk of your down payment will come form the equity from your current home. Equity of is the difference in what you owe on your current mortgage and the market value for your home. Speak to a real estate professional to determine the right sales price for your current property. By taking the sales price, subtracting out selling costs (settlement expenses, marketing fees, and paying off your old mortgage, you’ll have an idea of what you’ll have to use as a down payment on your move-up property.

After accounting for your financial situation, don’t be discouraged if you need just a little more time to get things organized in order to get into your target home. Remember it is likely your home is building equity while you are getting all of your finances in order!