In a recent Del Webb survey, it was found that more baby boomers are upsizing their homes as they approach retirement. According to the survey, 22 percent are looking to move to bigger homes. This is in sharp contrast to a few years ago, when most Americans were looking to downsize their residences. Now, homeowners are not just looking to upgrade their homes; they are hoping to add more living space as they spend more time at home. Regardless of your reason for wanting to upsize, finding a larger home can be a big task. To get yourself started, ask yourself these three questions.
Is Your Budget And Loan Eligibly Upsizing-Ready?
With a larger home comes more financial responsibility. Once you have decided to upsize, it’s time to think about how you will pay for it – and its impact on your current household budget. Can you adjust your budget to include higher monthly mortgage payments? To help you get an idea of house prices, use online property listings or recent sales of houses in the area you want.
If you plan on using financing to pay for your home, it is also recommended that you check your credit score in preparation for a mortgage application. Boosting your credit score in the 6 months leading up to your mortgage application can save you thousands in interest charges, which can be useful when you’re taking on a larger mortgage. Coupled with your available down payment and average house price, you could use the pre-approval checks on a Ryan Kelley mortgage to gauge your chances and what your monthly mortgage payments will look like if you upsize.
Is It The Right Time To Upsize?
You may be outgrowing your current home, and have decided it’s time to upsize. Alternatively, you may be retiring and thinking of expanding your living space to enjoy your later days. Whatever the reason, it’s important that your move to a larger home comes at the right time. Knowing whether it is the right time to upsize is a completely personal decision, and depends equally on your financial abilities and family dynamics.
Ask yourself whether your finances can handle the larger mortgage payments that come with a larger home. Remember to include the additional home maintenance and buying costs of upsizing. Also, can you afford to buy your dream home now, or are you looking to move again in a few years? If the latter is the case, then you will also need to focus heavily on the resale value of your new home to ensure you get the best return on your investment.
Are You Trading Location For Size?
Lastly, ask yourself what is important in your home besides the size. Homeowners looking to upsize can often find themselves facing a trade-off between size and location in order to stick to their budget. If you do have an area in mind, check out the other amenities it has to offer, such as proximity to shops/schools and transport links. Choosing a bigger home in a poor location can end up leaving you unhappy and out of pocket, so ensure it ticks all the boxes – not just size-wise.
The process of upsizing your home should be approached carefully and over time. Take the time to do your research, narrow down what features are important to you when upsizing, and check how your finances will cope with the move. Starting off with these three questions can ensure the process goes smoothly.