when you outgrow your home

Tips & Advice

MAYBE YOU NEED A LARGER

SPACE for a crafting hobby that has turned into an online enterprise. Or more rooms for extended stays by extended family. If your family is growing, you may need more bedrooms or a house with a yard for the furry family members. Here’s what you should know before you upsize your home or upgrade your neighborhood. your current home

Some homeowners can cover the cost of buying a new home without proceeds from the sale of their existing home. But if you’re like most people, you’ll need to sell your current home first. Start thinking about making repairs or improvements to get your home ready to sell. Work with a local agent and research list prices for similar homes near yours. your comfort level

A bigger home or a nicer neighborhood usually means a bigger mortgage than what you are paying now. Do the math to see if you can reasonably increase your housing payments and still cover everyday expenses and occasional luxuries. A larger home also means more square footage to heat, cool, clean and maintain. Consider your added costs in utilities, plus the additional time and energy you’ll put towards upkeep. your perception of the market

If you’ve lived in your current home for the past several years, the mortgage climate may be different from what you experienced before. While the housing crisis did lead to stricter lending guidelines, many lenders have loosened their requirements in recent years. You can still expect a very detailed review of your credit and finances, but there are a variety of programs out there to fit different buyers’ needs. You can also expect new, easier-to-use mortgage disclosure forms and more time to review them. This will help you feel confident when you go to the closing table so you know that your loan terms are on your terms.

This guide is for general informational purposes only. Please talk with qualified real estate and mortgage professionals for specific guidance.

Sources: http://www.hgtv.com/design/real-estate/how-to-know-you-re-ready-fora-bigger-house. http://www.investopedia.com/articles/mortgages-real-estate/12/dream-house-money-pit.asp Sources deemed reliable but not guaranteed. Not a commitment to lend. Borrower must meet qualification criteria. Equal Housing Opportunity. making your final selection. Granite and quartz provide endless options as well as a lifetime of beauty.

By Melvin R. Vallejos branch manager, Cornerstone Home Lending, Inc. past president, nm association of mortgage professionals