Are You Ready for Your Dream Home?
If you’re ready to upgrade to something roomier or make a lifestyle change, you can feel confident knowing Apollo Trust is here for you. We’ll make getting that dream home a reality!
First, we’ll discuss how long you plan to stay in your home. We typically recommend at least five years. We’ll also review your needs, such as family size, hobbies, shopping and work. Will the home be a good fit today and down the road? If not, you may lose money in the long run. During the first few years of any mortgage, you’re mostly paying down interest. So if you sell before five years, you’ll not have reduced much of the principal balance. That’s why the length of time you plan to own (or stay) in your home is pertinent.
Great Reasons to Move:
- Current home is cramped or the location is inconvenient
- Family needs are changing
- You find the home of your dreams – and can realistically afford it
Along with the features, it’s important to understand how much house you can afford. At Apollo Trust, we recommend 28% of gross income as a guideline when estimating mortgage payments. We also encourage customers to be a bit conservative. Don’t underestimate the costs of owning a larger home, including larger utility and repair bills, as well as a larger tax bill.
To see if it’s a good move, try living on your proposed new home budget for six months. This lets you assume the financial responsibility of the bigger home before you buy. Then you can determine if it’s in line with your budget and cash flow needs.
Finally, it’s wise to approach any major decision without the emotion. This will help you to understand the true impact a bigger home will have on your budget without being swayed by sentiment. What will your cash flow be like? Realistically review the pros and cons.
Reasons Not to Move:
- Not sure if you’ll be in the new home five years.
- Too expensive, can’t afford it.
- Lose flexibility to make a change in the future.
- Don’t want to take on more risk.
You Decide to Buy
Once you decide to buy a new home, we can help review your mortgage options. We’ll compare rates, terms, and closing costs. We may also recommend securing a pre-approved mortgage loan. There’s no obligation, but it can help you with budget planning and potentially make your offer more appealing to the sellers.
- Choose a reputable realtor.
- Make necessary improvements to your current home then list it.
- Sell your current home before making an offer on a new home.
(This avoids certain worst-case scenarios, like accepting a below-market offer for your current home, or paying for two mortgages at the same time.)
- Establish a realistic budget and set expectations for owning a bigger home.
- Get preapproved for your mortgage for increased bargaining power.
If you’re ready to take the next step in home ownership, let Apollo Trust help. We’ll be with you every step of the way, from reviewing your needs and budget, to application, closing and servicing your mortgage for life.