Selling our first house, buying a new home.

[rivacom]

Hi Everyone. Hopefully I can get some useful advice here.

I purchased my current house in Jan. 2008. It was a quick purchase and a starter home at best since my wife and I were getting married. Over the year and half we renovated the house here and there. Replaced the electric heat with a eff. gas furnace(with option to install AC unit), new appliances, partial finished basement. However the house is from 1979 and needs many new things like new windows/doors/etc. We did the math and to start replacing everything else that is needed, would be equal to just buying a new home(current mortgage + Improvements, vs. new mortgage at lower rates). We purchased our current home for $112k, and rolled our taxes and closing into the loan. $124k was the final mortgage amount. After a year about 4-5K has been paid off of the principal. I didn't deal with a Realtor the first time so the only experience I have is the shady Realtor the sellers had.

1. Should we go ahead and get a Realtor, even while were still working on different things on the house? Lots of staging and cleaning needs to be done.

2. Will the realtor help us with a purchase price, as well as finding a house for us at the same time? This will be one of those things where we need to sell this house as we purchase another house.

3. My wife's name isn't on the Deed or mortgage for this house. If we put her name with mine, would be qualify for the first time home buyers? Or if we just put hers, would she get it?

4. Should we put our house on the market before we've found our new house?

5. Anything else I should be considering?

Were trying to find something quickly since we are expecting our first in Feb. and she wants to get the house all ready for the baby.

Any help would be great. Thanks everyone.

[jsdomino]

By all means talk to a REALTOR (actually talk to 2 or 3). They will help you on both ends of the transaction, especially on the Selling side. It is amazing how many people choose to purchase without an agent, even though it generally costs nothing to use a Buyers agent. Just having a objective 3rd party is worth it, just make sure that you remain in control of the transaction. The agent is there to help you, not force you into any decisions.

Yes, you should put your current home on the market. It is taking a long time to sell homes today, and there are still a lot of available homes for purchase. Once you have your home under contract, you will know how much you can afford on your next purchase.

As for the 1st time buyers tax credit, you need to speak with a good tax professional. Buying the new home in just your wife's name may work, but it depends on your state (some states are community property states), how you filed your taxes in the past, etc.

Keep in mind if you try to purchase the new home with only your wifes income she may not qualify for the mortgage without your income.

You new to get advice from qualified professionals. I know you want to do this on your own, but there is no shame in getting help.

[lylej]

Absolutely use a Realtor. It sounds like you need an attorney and tax professional for the other matters.