How to Build Your Home Equity

selling a house

Building your home equity sets you up for major savings and future home selling success. The more equity your home gains, the more money you can use towards another home when you decide to sell. At the moment you choose to sell your home and buy another, you can use the equity on your current home to put towards the down payment on your new home to save you from having to pay out of pocket.

A Few Ways to Build Your Home Equity

Make a Big Down Payment

To start building equity from the beginning, you can make a big down payment. The bigger the down payment, the more equity you will have at the start of owning your new home. Assess your financial situation and goals before deciding the amount you will put towards your down payment to help you make a sound financial decision. 

Put Down a Little More Than Usual On Your Mortgage.

Increasing the amount of money you pay on your mortgage sounds crazy, but in the end, it will be worth it. If you can afford to pay more than you have to on your mortgage, you can decrease your outstanding loan balance faster and increase your home equity. 

Increase Your Home Value

From replacing your home’s garage door to taking on large backyard projects, you can reap the benefits of all your hard work when you decide to sell your home. Home renovations and other projects that add value to your home help boost your home equity. To help you decide what type of renovations and projects will give you the highest return on your investment, consult a real estate agent for expert advice.

Wait For the Right Time

If you are not in a rush to build equity, it is okay to wait for the right time. The right time is when the housing market is in your favor, meaning that home values and the demand for homes are high in your area. When you take advantage of this opportunity, you can most definitely expect to get the most bang for your buck. On the other hand, when the market is slow, your home could depreciate and lose equity. Consult an appraiser for expert advice to help you decide the best time to sell your home.

The American Dream is all about helping you succeed in your home selling and home buying aspirations. No matter how you choose to build your home equity, you are setting yourself up for future success. For more information about how we can help you succeed in your home selling and buying aspirations, contact one of our agents today.

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