My Real Estate Blog

Our lives change almost daily but sometimes there are major events that force us to re-examine where we are: A first child or another baby on the way, aging parents have decided to move in, or maybe you're starting your own home-based business. There is an endless supply of reasons why a family may need to move up to a bigger, or nicer, home.

Here are some things to consider: 

1)  Interest Rates. There is a huge difference between buying a home at 5% interest and buying one at, say, 10% interest. The available rates can change from week to week, and how you qualify depends largely on your credit rating. The first thing you should do is to contact a local mortgage lender to find out what rates would be available to you on what loans. Keep in mind rates also vary depending on the type of loan for which you are applying (fixed, adjustable, conforming, jumbo, 30 year, 15 year, etc.).

2)  Income. Moving up to a bigger or nicer house will more than likely mean a bigger mortgage payment. Take an honest look at your budget to see if this makes sense for your family.

3)  Equity. This is one way to avoid a bigger mortgage payment. If you have substantial equity in your current home, and are selling in a good sellers market where you expect to receive around your asking price, then you could apply your profits from the sale of your current home towards your new mortgage.

4)  Market Conditions.  Is your market favoring buyers or sellers? Are homes selling quickly? Are prices appreciating or falling? These are all important questions to ask.

5)  Wish list. Many first homes are starter homes, and as families grow, needs change. Neighborhoods changes as well, as residents age and jobs come and go. Take a moment to consider what area of town would be best for your family. Think about schools, commute times, and neighborhood amenities.

Use these simple issues as a starting point on your journey to a new home.