Sometimes, when you realise that your family or your income has outgrown your existing property, there’s only one thing left to do – and that’s invest in something bigger and better. Although it’s important to make sure that you don’t jump into a home buying situation that you’re not ready for, sometimes, trading up on your current home loan can be the right decision – particularly if you’re feeling cramped for space.
Here, we’ll take a look at the signs that it’s time to move into something bigger, and what you should ask yourself before you visit your mortgage broker to start looking at new mortgage deals.
How Do You Know It’s Time to Trade Up?
Typically, your first home is unlikely to be the one that you spend the rest of your life in. When we buy our first property, we’re often looking for a simple, and cost-effective way to get on the real-estate ladder, while getting just enough space to feel comfortable. If you bought your first home when you were young, then this makes it even more likely that you’ll need to trade up to something bigger in the future, particularly if you’re thinking about starting or expanding your family.
Though your first property might have been perfect for your needs when you originally bought it, a lot of people find themselves “growing out” of the homes that they buy in their early years. If you find yourself having extra cash at the end of the month, but you’re struggling to find enough rooms for all the people, or belongings in your home, then that’s a sure sign that you’re ready to take the next step and invest in an upgrade.
What to Consider Before You Buy Bigger
If you think that now is the perfect time to upgrade your house, here are a few issues you’ll need to think about before you start signing any papers, or applying for a new mortgage:
What Can You Afford?
Purchasing a bigger house, in a better neighbourhood typically means that you’re going to end up spending more money. Although, depending on the market, it’s worth noting that sometimes your money can buy you a lot more house than you might expect. Think carefully about whether you want to stick somewhere close to your current mortgage payment, or whether you can handle something a little bigger.
Are Your Finances Looking Good?
Depending on when you last bought a home, you might find that getting your hands on the best mortgage deal is much more difficult than you remember. Lenders today generally look closely at your income, assets, liabilities, and debts, to make sure that you’ve got enough money to pay for the house of your dreams. Think about your current credit rating, and ask yourself if your finances are in good enough shape to apply for a great home loan deal.
Can You Sell Your Current House?
If you’re in a position where you currently own your existing home outright, without any liens or mortgage to worry about, or you have enough cash to buy a new home without having to sell your current home, then you’re in an enviable position. However, most people will need to sell before they buy. This means that you’ll need to think about whether your home is in a good position for sale, or whether you’re going to need to make some repairs and changes before you put it on the market.
Time to Invest in a Bigger Home?
Ultimately, only you can decide whether you’re in the right place to invest in a bigger, and better home than the one you currently own. However, if you look at your finances carefully, and determine that you’re ready to make the move, the experts here at Home Loan Cash Back can at least help you to get the best deal. Contact us today to find out more about what we can do for you!