Upgrading to a New Home
Are you ready to sell your starter home?
The starter home is a real estate rite of passage - and a source of nostalgia - for many American families. But, when is the right time to consider upgrading from a starter home? There's no easy answer, but here are some common reasons for buying a new home.
Common reasons for upgrading to a new home
- Changing space needs: Couples often outgrow their starter homes when they start a family. If you're short on room and plan on adding to your nest, you may want to consider buying a new home.
- Safety concerns: People sometimes find that the location of their starter home is not ideal for a family, especially one with young children. If your starter home is located in an area that is not family-friendly, such as along a busy street, buying a new home may be a good option for you.
- Ability to afford a nicer place: When people purchase their first homes, they are often beginning their careers and have limited budgets. If your financial situation has improved since you purchased your starter home, it may be a good time to think about upgrading to a new home.
- Cut down on work commute: Peoples' careers often change in the years after they purchase starter homes. If you've landed a job that is a considerable distance from where you live, you may want to think about buying a new home. Living closer to where you work can save you the time, cost and stress of a long commute.
- Low interest rates: Low interest rates can provide a great window of opportunity for upgrading to a new home. If you're able to take advantage of them, low rates can allow you to get more for your money - whether you want a home with more space, better amenities, a different location or all of the above.
Tips for selling your starter home
As you would before trying to sell any house, you'll want to prepare the inside and outside of the house so as to show it off in its best light. Known as staging your home, removing clutter and painting the interior in neutral colors are just two things you can do to make your home more appealing to potential buyers. Also, make sure you consider how the outside of your home looks. Sprucing up the landscaping and cleaning the windows are just some of the steps you can take to enhance your home's curb appeal.
What about the mortgage?
The process of upgrading to a new home generally involves paying off your existing mortgage while arranging for another. The buyer of your property will provide the funds you'll use to pay off your current mortgage. If you are able to sell your starter home for more than you owe on it, you can put your profit toward the down payment on your new house. If you purchase your new house before finding a buyer for your current home, you may have to arrange for a bridge loan, which is designed to cover you while you're carrying two mortgages.
Upgrade from your starter home with a mortgage from Citizens Bank
Whatever the reason you're upgrading to a new home, Citizens Bank has a mortgage to fit your needs. Learn more about Citizens Bank's mortgage rates and options, or start the mortgage application process now. For additional information, contact a home loan advisor at 1-888-514-2300.