Are you ready for a larger home? Perhaps you prefer your home be in a more desirable location? If you can relate to most of the scenarios below, perhaps it is a sign that you are ready for a move!
You have built substantial equity in your current home. Check 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.
Your income or financial situation has improved. You’re making more money, you’ve budgeted wisely, and you may be able to afford higher mortgage payments and cover the costs of moving.
You feel you’ve outgrown your neighborhood. The neighborhood you picked for your first home might not be the same neighborhood in which you want to settle for good. You may have realized that you’d like to be closer to your job or live in a better school district.
There are reasons why you can’t remodel or add on to your current home. Your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling.
You are 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.
Interest rates are attractive. Low rates not only help you buy a larger home, but also make it easier to find a buyer.