It feels like your home is bursting at the seams and figure it’s time to move up. Here are some tips to help make the move up easier.
The biggest thing that should be considered when you decide it’s time to move up is can you afford it. Needing space and being able to afford it are two completely different things. To get to a decision on affordability you need to do a few things.
First, find out what they payoff is on your current mortgage. Not the balance, the payoff figure.
Now you need to talk to a Realtor about what your home is actually worth. Obviously, if you’re upside down on your mortgage, meaning the mortgage payoff is more than the value of the home, moving up shouldn’t be on your list of things to do. If it is worth more than the payoff figure, your Realtor will help you determine by how much.
That should be your next determining factor. Are the net proceeds
enough to be a decent down payment on your next home?
So let’s say that your home will sell and give you a good down payment and all your closing costs for both the sale and purchase. Next you need to contact your lender, or a new one, and get yourself qualified for a new mortgage. To do that you’ll need to know what your price range for the new home should be. You can determine it the same way you did when you purchased your last home. You need to keep in mind that a bigger house will mean bigger bills.
Your mortgage, homeowner’s insurance, real estate taxes, heating and cooling costs and other bills will cost you more. You need to realistically sit and set up a budget.
Don’t move up if it means that you will be house poor. Be smart. Move up when you can afford it, and if that’s now, get moving!
If you are in the Tampa Bay area, now may be a time to move up. Home prices have risen and may have created equity in your home that can cover the cost of moving up. Give us a call today to find out if moving up makes sense for you!