As your circumstances change over time, so can your housing needs. You may find that you have outgrown your current home. Or perhaps you are in a better place financially and you want to upgrade to a newer, bigger, more luxurious home. Or maybe you wish to buy a vacation home or an investment property. If the idea of bigger square footage, a better location, or luxury amenities sounds enticing to you then moving on up may be the right choice.
With today’s favorable home prices and mortgage rates, there truly has never been a better time to become a move-up buyer. One of the advantages of upgrading is that you can use a portion of your current home’s equity towards the purchase of your new home. That is if your current home sells first!
If moving on up appeals to you, you should contact Maximum Lending to discuss your home financing options with an expert loan officer, prior to listing your current home with a licensed realtor. Getting pre-approved for home financing will allow you to shop with confidence. In today’s market, shopping with a pre-approval from a mortgage lender, such as Maximum Lending is the only way to go.
What to Consider as a Move-Up Buyer
Before deciding to become a move-up buyer, you should consider:
What are your requirements? Your first step should be to figure out what city or neighborhood you want to live in. Pay special attention to neighborhoods with good school districts and other signs of economic vitality. You should also make a list of your requirements. Do you want a pool, stainless steel appliances, or granite countertops? List your requirements in order of importance.
How much home can you afford? Next, you will need to determine how much house you can afford. You can start by using our online mortgage calculator. For a more accurate figure, you will want to be pre-approved by Maximum Lending, as our expert loan officers will look at your income, debt, and credit score to determine how much house you can realistically afford.
How much equity is in my home? To find out how much equity is in your current home, you will need to find the value of your home, and subtract the amount you owe from its value. For example, let’s say you owe $80,000, for a house valued at $110,00. You would subtract $80,000 from $110,000 to get an equity of $30,000. A mortgage officer can help you determine your home’s actual equity.
How much will selling my home cost? In order to sell your home, you may need to invest in structural or cosmetic upgrades, so that it is more appealing to buyers. Remember curb appeals sells! You will additionally want to budget in real estate commissions, which often vary from state to state, and city to city. Even if you are selling your home yourself, you will need to account for marketing costs.
What is the market like in my area? The prices of homes vary widely within different parts of a city. Based on your area’s current market, your home may sell for significantly more than you bought it for, significantly less, or somewhere in between. It may also sell faster or slower than you anticipated. To ensure a quick sell, you should price your home realistically.
Upgrade Your Home Today!
Types of Mortgages
Buyers looking to upgrade to a new home have plenty of types of mortgages available such as FHA Home Loans, VA Home Loans, Conventional, Jumbo Mortgage and Super Jumbo loans. Each option has its advantages based on the amount of money you have for a down payment, your financial stability and how much you want to pay each month.
Contact a Maximum Lending home loan specialist today to get a quote for your new home mortgage.
- Home Buyer Center
- Mortgage Calculators
- First Time Home Buyer Center
- Preparing for a Home Loan
- Shopping for a Home
- Closing Your Mortgage
- Gaining additional space: Perhaps you need extra room for your growing family or more space to accommodate your social life and hobbies.
- Career Changes: Changes in your career may make it necessary to relocate to a new area.
- More luxurious amenities: Additional income may allow you to upgrade to a more luxurious home.
- Manageable space: If you want to downsize or simplify your life, you may be ready to consider a smaller home.