There are many reasons why you and your family may need to upsize. You may decide that the time is right to move out of an apartment and into a house with your partner, taking the plunge as first time buyers. You may have a little one on the way, or you may need to accommodate an elderly member of the family like a parent so that you can look after them with the love and dignity that they deserve. Or perhaps, you’ve just outgrown your smaller home (it happens), and the inevitable accumulation of possessions has caused the place to become worn and cluttered to the point where the place stops feeling like home.
You may feel that moving into a larger property or a property of your own is beyond you both logistically and financially but you’d be surprised how much help is out there as well as how easy it can be if you plan right and go in with your eyes wide open. Here we’ll look at some ways in which you can downsize the headache of upsizing your home.
There’s more help out there than you’d think
Many people are put off even attempting to upsize their property by thoughts of huge down payments and unfathomably huge costs as well as anxieties if your credit is less than perfect, but there’s a lot of support out there, especially if you’re a first time buyer. The Federal Housing Authority (FHA) is dedicated to helping people purchase their own property despite not having the ready capital to put down a sizeable down payment. FHA loan requirements are surprisingly simple. Principally you need to have…
- A FICO score of at least 600
- Proof of your income such as pay stubs or tax returns
- Your purchase must be your primary residence as FHA do not assist in the buying of buy-to-let properties or vacation homes.
- No defaults on any government loans. Likewise you must have no unpaid taxes, or federal debts.
Be mindful of the costs
As with most things, preparation is everything when planning to upsize and for it to be realistic and viable, it’s important to take stock of your finances and go into the move mindful of the inherent costs associated with a bigger property and with a realistic understanding of your own finances.
Your first consideration, for example, will be your mortgage so it’s important to know exactly how much you’ll be able to buy and look at properties that are realistic in their cost and the associated running costs (more on those later). A mortgage calculator is a very useful tool for buyers to get a reliable idea of what they can expect your monthly mortgage payments to be.
The mortgage costs are important, but there are also many other costs that need to be borne in mind when planning your projected budget for your new home.
Plan your budget with all costs in mind
In order to ensure that there are no nasty surprises while upsizing, it’s a good idea to sit down and plan out what your budget will look like. It will incorporate not only your mortgage but your tax, utilities and insurance (which will all likely be increased due to the larger size of the property).
There will also be some costs incurred by the move itself which you may need to factor in such as…
- Conveyancing costs
- Mortgage arrangement fees
- Estate agents fees
- Broker’s fees
- Indemnity fees
So long as you avail yourself of the help that’s out there and take the time to work out the math before you make the jump, you may find upsizing a good deal easier than you previously thought.