These questions will help you decide whether you’re ready for a home
that’s larger or in a more desirable location. If you answer yes to most of the
questions, it’s a sign that you may be ready to move.
1. Have
you built substantial equity in your current home? Look at
your annual mortgage statement or call your lender to find out. Usually, you
don’t build up much equity in the first few years of your mortgage, as monthly
payments are mostly interest, but if you’ve owned your home for five or more
years, you may have significant, unrealized gains.
2. Has
your income or financial situation improved? If you’re making more
money, you may be able to afford higher mortgage payments and cover the costs
of moving.
3. Have
you outgrown your neighborhood? The neighborhood you pick for your
first home might not be the same neighborhood you want to settle down in for
good. For example, you may have realized that you’d like to be closer to your
job or live in a better school district.
4. Are
there reasons why you can’t remodel or add on? Sometimes
you can create a bigger home by adding a new room or building up. But if your
property isn’t large enough, your municipality doesn’t allow it, or you’re
simply not interested in remodeling, then moving to a bigger home may be your
best option.
5. Are
you comfortable moving in the current housing market? If your
market is hot, your home may sell quickly and for top dollar, but the home you
buy also will be more expensive. If your market is slow, finding a buyer may
take longer, but you’ll have more selection and better pricing as you seek your
new home.
6. Are
interest rates attractive? A low rate not only helps you buy a larger
home, but also makes it easier to find a buyer.
