How much down payment do I need? Do I really need 20%? Not always. Many home loans let you put down less.

FHA loans: as little as 3.5% down. You’ll pay a mortgage insurance premium, called MIP. With less than 10% down, it generally lasts for the life of the loan. With 10% or more down, it generally ends after 11 years.

Conventional loans: as little as 3% down. With less than 20% down, you’ll pay private mortgage insurance, called PMI. It can usually be removed once you’ve built enough equity.

VA loans: little or nothing down. VA loans for veterans may need little or nothing down.

Do you need 20 percent down to buy a house? No, but a bigger down payment lowers your monthly payment. Just don’t empty your savings to get there. Keep money set aside for closing costs, moving, and surprises.

Compare a few choices. Ask your lender to show you the monthly payment at a few different down payments.

(See also: Should I Give Up My Low Mortgage Rate to Move Up? and Why Should I Get Pre-Approved Before I List My Home?)

Should I give up my low mortgage rate to move up? It depends on why you’re moving.

The rate is one factor, not the whole decision. If you need more room, or your home no longer fits your life, the rate matters. It’s not the only thing that matters.

Your rate doesn’t move with you. Your next home comes with a new loan at today’s rates.

Look at the real numbers. The equity from your sale can lower how much you need to borrow. Ask your lender to show you the monthly payment on the home you want, not just the rate.

Giving up a low interest rate: weigh both sides. Compare that payment with what staying costs you, and make the choice that fits your life.

(See also: Should We Remodel or Move Up? and Why Should I Get Pre-Approved Before I List My Home?)

Why should I get pre-approved before I list my home? Because selling this home and buying the next one are tied together.

What a pre-approval is. A lender has checked your income, credit, and savings, and tells you how much they’re willing to lend.

The big questions it answers early. For a move-up buyer, a pre-approval answers the questions that shape your whole plan. Can you buy before you sell? How much of your equity will you need for the down payment? What price range should you shop in?

It makes your offer stronger. When you find the right home, the seller knows you can close.

Mortgage pre-approval before selling your home: when to call. Talk with your lender before your home goes on the market, not after.

(See also: How Do I Buy a New Home Before I Sell Mine? and How to Use the Equity in Your Current Home)

If you buy before you sell, you may be paying for two homes for a while.

What your lender looks at. Your lender will usually count both payments when deciding how much you can borrow. That can lower the price range you can shop in.

How to afford two mortgages: ask yourself honestly. Could you cover two mortgages, plus taxes, insurance, and utilities on both homes, for three months? For six?

Have a backup plan. Your home may take longer to sell than you expect. Savings set aside, or a price adjustment on the home you’re selling, can keep you from feeling stuck.

Having two mortgages at once doesn’t have to be stressful. Knowing your answer before you buy keeps a short overlap from turning into a long worry.

(See also: How Do I Buy a New Home Before I Sell Mine? and How Much House Can We Really Afford?)

For most move-up buyers, the down payment is tied up in the home they live in now. There are a few ways to reach it before you sell.

A home equity line of credit (HELOC). A HELOC lets you borrow against your current home. Some lenders won’t open one once your home is listed, so ask early.

A bridge loan. A bridge loan is a short-term loan that covers the gap until your home sells.

Buy-before-you-sell programs. Some lenders also offer programs built for buying your next home before your current one sells.

Bridge loan vs. HELOC: which is right for you? Each choice has its own costs and rules. Your lender can walk you through how they compare for your situation.

Buying a home before selling yours starts with your lender. Talk with your lender before you start shopping, so you’re ready when the right home comes along.

(See also: What Is a Contingent Offer, and Will a Tacoma Seller Accept Mine? and How to Use the Equity in Your Current Home)

If you’re buying your next home before your current one sells, you’ll hear the words “contingent offer.”

A contingent offer means your purchase depends on something else happening first. For move-up buyers, that’s usually selling your current home.

Do sellers accept contingent offers? They can, but it’s riskier for them. So make yours as strong as you can.

How to make a contingent offer stronger.

• Get pre-approved. It shows the seller you can buy once your home sells.
• Get your current home ready to list, or already on the market. The closer you are to selling, the less the seller has to wait on.
• Keep the timeline reasonable. A long wait is harder for a seller to say yes to.

What happens if another offer comes in? Depending on the agreement, the seller may keep showing their home. If another offer comes in, you may be asked to remove your contingency or step aside.

Can you buy before you sell? Talk with your lender and your REALTOR® about whether you can buy before you sell.

(See also: Should We Remodel or Move Up From Our Home in Tacoma? and How Do I Compare Multiple Offers on My Tacoma House?)

If your home isn’t working for you anymore, you have two choices: change the house, or change houses.

When remodeling makes sense. Remodeling can be the right call if you love your location and the fix is clear, like a bigger kitchen or another bathroom.

Get real bids first. Projects often cost more and take longer than planned, and you may be living in the middle of the work.

Will the remodel pay off? Ask whether the project would make your home the most expensive one on the street. If it would, you may not get that money back when you sell someday.

When moving up makes sense. Moving up is often the better choice when you need more than a remodel can give, like more land or a different neighborhood.

Is it better to remodel or buy a new house? Price both options before you decide. Put the remodel bids next to what a move-up home would cost, using the equity in your current home.

(See also: You’ve Outgrown Your House? What Do You Do Next? and How to Use the Equity in Your Current Home)

If you’ve owned your home for a while, you may have more buying power than you think.

What is equity? Equity is the difference between what your home is worth and what you still owe on it. For many move-up buyers, it becomes the down payment on their next home.

Start with a realistic value. Online estimates are a starting point, not the answer. Call your local REALTOR® for a CMA, a Comparative Market Analysis, for a more accurate evaluation. A CMA looks at recent sales of homes like yours, in your neighborhood, so you’re working with real numbers.

Then make a plan. Talk with your lender and your local REALTOR® about how to use that equity, and whether you’ll need to sell before you buy. The answer affects your timing, your down payment, and how strong your offer will be.

Knowing your numbers early makes every other decision easier.

When the right home comes along, you may not be the only buyer who wants it.

Multiple offers can be stressful, but you can prepare before it happens.

• Get fully pre-approved, not just prequalified. A pre-approval shows the seller your financing has been checked.
• Decide ahead of time the most you’re willing to pay for a home, and stick to it. It’s much easier to set your limit before emotions take over.
• Talk with your agent about terms that matter to the seller, like closing date, a large down payment, a sizable earnest money deposit, not just price.

And remember, it’s okay to walk away. Losing a house is disappointing, but overpaying can follow you for years.

The goal isn’t to win at any cost. It’s to win the right home at the right price.

Your lender can tell you what you qualify for. But that’s not always the same as what you can comfortably afford.

Before you set your price range, look at your whole monthly budget. Savings. Travel. Hobbies. Entertainment. The things that make life enjoyable.

Then add up the costs that come with owning a home:

• Property taxes. They’re often included in your monthly payment, and they can change over time.
• Insurance. Homeowners insurance is required by your lender and varies from home to home.
• Keeping up a home. Roofs, furnaces, water heaters, and yards all need attention sooner or later.

Then choose a payment that still lets you breathe.

A new home should make your life better, not more stressful.

Know your comfortable number before you fall in love with a house.