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What To Consider Before Moving Up
Can I Afford It?
In most cases a bigger home means more money which results in a bigger mortgage payment.
You may be comfortable with a bigger mortgage payment but a bigger home also means more rooms, more floors, and more outside space that requires cleaning, heating and maintenance. Also, don’t forget that if you are moving up you will most likely endure larger property tax or maintenance fees if you are moving to a luxury condo.
These are all factors that need to be considered when thinking about your overall budget.
What Shape Are My Finances In?
Mortgage lending guidelines are always changing. Depending on when you got your last mortgage you may find it more difficult in today’s lending environment.
If you are looking to move up and borrow more you will want to be sure you haven’t done any damage to your credit since your last home purchase. Be prepared for lenders to closely look at your income, debts, assets and liabilities to ensure you fall within safe debt-to-income ratios.
Should I Sell My House?
Unless you are ready to carry two mortgages most people will need to sell before they buy.
In an ideal “moving up” world you will sell your house and make enough profit to cover the upfront expenses on your new home with a sizeable down payment.
How Will “Moving Up” Affect My Everyday Life?
Some additional things to consider when deciding if it is time for you to move up are schools districts in the area if you are planning on raising a family. The distance of your daily commute; will it increase or decrease and how will that affect your quality of life? Will you need to switch schools or doctors / dentist etc.? All of this should be researched moving making a decision.
Remember – this is one of the largest purchases you will make. It is important to do your research and talk to professionals.