How to upsize your home in the New Year

The holidays came and went, and with extended family and friends in your home, you likely noticed if you were filled to the brim in your home. There’s nothing like spending the holidays at home to rapidly increase awareness of your need to expand. A larger home tends to have many benefits: more space, more amenities, and more room for your family to grow.

In fact, many homebuyers find themselves in a position to move into something more spacious a few years after purchasing a starter home. Keep in mind that this is a normal move, which means there are plenty of resources available to you. If it seems like a daunting task, here’s where you can get started.

Is something about your home encouraging you to start looking for something else? Take note of what it is that makes you want to move. Is your kitchen too small? Do you need more bedrooms? Do you have kids that are outgrowing their space? Do you want a bigger yard? Start there to see what you might want from a new home.

From there, start thinking about what the benefits of selling might be. If you’ve lived in your home since 2019, it’s likely you have significant equity you can leverage. The income you make on your home is money that could be used to pay a down payment on something bigger. In addition, you can look into incentives from area builders and lenders, such as a rate buydown or other incentives that may be able to sweeten the deal.

Pre-approval is always the first step to consider when you’re considering making a move. This process provides you with an official, non-binding document that outlines how much a lender is willing to let you borrow on a home. Because housing is still in high demand in the Triangle, pre-approval is key to house-hunting, particularly if you find a home you want to move on. The pre-approval letter will help sellers know you’re serious, as well as help you look for the homes you can afford.

Keep in mind that you may need specific financial documents, such as W-2 statements, 30 days of pay stubs, and a recent bank statement. While you can often begin the process online, you’ll want to work directly with a local lender like Towne Mortgage of the Carolinas or North State Bank. These lenders are well-versed in the Triangle market and can provide you with insights to help you get into the right home.

One of the best ways to really weigh whether it’s smart to make a move to a bigger home is to take a close look at your budget and figure out what you’d be willing to pay for your monthly mortgage payment. You can start by using the 28/36 rule, which is a simple way to calculate what you may be able to afford. A maximum of 28 percent of a household’s gross monthly income should go to total housing expenses, and a maximum of 36 percent should go toward total debt.

Keep in mind that selling will likely give you cash to use toward a new home. However, if you can come up with a number that you would feel comfortable discussing with your mortgage lender, that’s a great place to start. Having a budget in place will help your lender identify any programs that may be able to help you purchase the home you want.

You’ll need to find a great agent if you’re thinking about selling to buy something new. First, an agent will give you insights into what kind of selling price you may be able to get out of your home. The great news is that homes across the Triangle are still selling close to asking price. And because there is still a shortage of homes, there’s a good likelihood your home will sell quickly. A good agent will help you make those determinations, as well as help you locate the perfect new home.

If you’re considering new construction, you’ll still want to hire a real estate agent that specializes in new construction. Agents can help you navigate the process, keep things on track, and answer any questions you may have along the way. Any agent will be your advocate through the buying process, so make sure to find an agent you can trust.

Before you start looking for a home, make sure you create a wish list that you want in a home and talk to your agent about what you’re looking for. That list will keep you on track while house hunting, as well as give your agent insight into what you’re looking for. Make sure you’re honest about what you want in your wish list. Ideas can be as straightforward or wild as you want, as long as you know that these items are what you want in a home.

From there, split your list into must-haves and nice-to-haves. Must-haves should be those things that you will want to prioritize, like number of bedrooms and bathrooms, proximity to work or schools, or an open kitchen for entertaining next holiday season. Nice-to-haves should be a list of those things that might seal the deal for you. It could be a pool, an extra garage, or specific barkitecture for a four-legged family member. Make sure you’re clear about what you want so it makes the search easier.

As you consider moving into a new stage of your life in a new home, it pays to start with a highly informed real estate team. They will help make the process easier for you, and you’ll be able to spend your next holiday ready to entertain in your new home.

The Jim Allen Group provides access to information on this blog/website as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all of the information made available is current, accurate, and complete…[read more]