Benefits of Home Downsizing and Obtaining Your New Mortgage.


Small home near Hoorn, The Netherlands.

This is the first of a series of guest blog posts by Sameer Aziz. Sameer is a Home Mortgage Consultant with Wells Fargo Home Mortgage.

Are you considering downsizing?  Right now could be the best time for you to make the move.  With the housing market turning recently, home sales are increasing month by month.  This means you will likely sell your house quicker and for a price you will be happy with. 

There are many benefits to downsizing, among some of the best reasons are:

  • Save on Utilities
    • Heating expenses are on the rise.  According to the EIA, this winter season heating bills will rise 20% for heating oil, 15% for natural gas, 13% for propane, and 5% for electric.  Why pay this rising cost for space in your home no longer used?


  • Save on your Mortgage.
    • If you are downsizing, you are likely going to be spending less on the home with a lower mortgage payment, as well as lower property tax and insurance bills.  With mortgage rates at all time historic lows, it’s a perfect time to take advantage of buying a new home, locking into a low interest rate, and putting some extra cash back into your pocket!
  • Save your Time.
    • A smaller home means less cleaning, less maintenance, and less yard work!   Not only will you be saving money, but saving time you can now use to do things more personally enjoyable.

Now you know it’s advantageous for you to downsize, now it’s time for prepare for obtaining a new mortgage.

  • Contact your Realtor and Mortgage Consultant.
    • Before you do anything, contact a realtor and lender!  Make sure you are in the financial position to obtain a mortgage, and consult with an experienced, knowledgeable mortgage professional about your situation and goals. 


  • Get Pre Approved.
    • You will likely need to sell your home before purchasing a new home, but consult with a real estate professional what strategy best fits your situation.  Then consult with a mortgage consultant to make sure you can pursue that strategy.  Having a pre approval consultation will educate you on what is needed financially in order to get into a new home.


What’s your situation?  Are you looking to aggressively pay your mortgage off or looking for a longer term to slowly pay it off?  All these questions need to be discussed with the lender during the pre approval process so they can help you make an informed decision on which loan program best benefits your current situation, as well as longer term goals.


  • Gather your Financial Documents.
    • In order to have a full approval, you will need to give your lender all the necessary financial documentation.  In today’s strict lending environment, don’t trust an approval letter if you haven’t given your lender any financial documentation.  The letter is not precise until all documentation has been reviewed.  The last thing you want is have your house sold to then get an unpleasant surprise that your approval letter is not accurate!  Don’t put yourself in that situation.

Today’s lending environment can be extremely rigorous with endless documentation, leaving some borrowers frustrated with the process.  This doesn’t have to be the situation if you are working with a reputable lender.  A knowledgeable mortgage consultant will guide you through the process, and let you know up front what to expect, and what is needed. 

I will be happy to provide you a complimentary consultation, and help with your approval to get you into your new home!

To learn more, please visit my web page at

Photo Courtesy of and Pixelmaniac’s Photostream.

Call, text or email me with any questions, or if you need a Realtor to sell your home and/or find your next one! 502.807.4999

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