You won't qualify for a second mortgage if your debt-to-income ratio (DTI) is too high, so you may need to sell your home quickly to avoid losing your dream home. In this case, it might make financial sense to sell your home and not strive to increase your capital. Perhaps you've taken a look at the real estate market and are already hoping to make a profit with a good sale price when selling your home. If you bought a starting home and are now considering moving to another, you may be wondering how long you should own your home before selling it.
Buying and Selling Costs Buying and selling costs are an important and often overlooked factor in determining how long you should own your home before selling it. When you sell your home and go to buy another one, you promise more closing costs that need to be financed. Unless you need to sell quickly for a specific reason or unless you see a way to make a profit from the sale, it's best not to sell your house too quickly and stay in place for at least 2 or 3 years. If you study real estate market patterns, you'll be better prepared to sell at an advantageous time.
However, if you're planning to get a mortgage for your new home, you'll need enough income to pay both payments until your old home is sold.
