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.
