Upgrading to a Larger Home: Should you go for it?

Your family is growing so you need a bigger home, right? It seems like such an easy decision, but you may want to put some major thought into it before you make that big jump. Here are some things to consider:  

What can you afford?

Before you decide to upsize your home, ask, “What can I afford”?  If you are struggling with your finances in a smaller home, reconsider if you are ready for a price jump. Many times, larger = pricier. So make sure you know how much home you can afford.

Here is a fun and simple budget planner to help!

Remember the hidden expenses!

There are so many things we often forget when buying a larger home. If there is more space, then there are extra expenses you may not have had before such as:

• Higher utility costs

• More furnishings to fill space

• Property Tax

• Higher home owners insurance

• Maintenance of property

 These can add up, and will impact your finances. Make sure you a prepared financially before you make the move.

Timing.

Having perfect timing is important in almost all things in life, especially in the moving process. Make sure that you are in a good spot financially. Think about the situation with your current home. Is there a fair market? Even though you may be anxious to move into your new home, make sure things are/will be settled with your old home first.   

Think about the future.

In the grand scheme of things, you’ll need money rather than extra room. Don’t put yourself in a situation that will affect your life savings or your retirement. Also, think about how long you’ll be in the home. If you’re moving into a large, two story home, will you be able to keep up with maintenance when you’re older? Think about the big picture, so you’re not jumping into a situation that can make things worse in the long run. 

Conclusion.

When it comes to upgrading your home, just remember to think things through. Make sure you’re making the right decision for not just now, but your future as well.

For more mortgage advice and tips, visit us at www.abecumortgages.org or watch our mortgage education videos for more information.