When you own a home and potentially have a family, life may be hectic and full of obligations that need to be handled. Lunch needs to be made, work is beckoning, and your house might need some upkeep. Such a lifestyle can make moving to a bigger and better home seem even more challenging. How can you even fit this into your already crammed to-do list? However, considering that a larger property will be able to suit your expanding family and needs, moving there might be the best option for you. But how do you truly know if this is what you should be focusing on? Here are our top 7 signs you need a bigger home.
1. You Feel More Financially
Stable
Not everyone who needs a larger
home is in a position to purchase one. Living in a small space that doesn't fit
your daily needs is not comfortable, but buying a property you can't afford
could be risky for your financial stability in the long run. So when
downsizing isn't the solution, what are some signs you need a bigger
home and can afford it?
- You Have A Low Debt-To-Income (DTI) Ratio
Your debt-to-income (DTI) ratio is
quite simple to calculate and divide your monthly debt payments, such as your
rent or student loans, by your gross monthly income. Afterward, multiply the
result by 100, and you will get your DTI ratio. Your goal is to get this ratio
as low as possible while also keeping in mind that lenders often require DTIs
lower than 40%.
- Your Credit Score Is High
A credit score is often a
three-digit value between 300 and 850. Your payment history, the total amount
of debt you owe, and the length of your credit history are all taken into
account when calculating your credit score. Credit scores between 580 and 669
are regarded as fair, 670 to 739 as good, 740 to 799 as very good, and 800 and
up as exceptional.
- You Have An Appropriately Large Emergency Savings
Account
Saving a sizable sum of money may
seem unattainable, but it's essential if you want to feel secure no matter what
happens. The standard recommendation for a good emergency fund is to have six
months' worth of income in your savings account.
- You Will Be Able To Afford A Down Payment of 5%
Depending on the size of your future
home and the payment plan you choose, you should calculate if you can afford a
down payment of at least 5%. And remember that private mortgage insurance may
be more expensive if you have a down payment of less than 20%.
2. Your Family Is Expanding
A clear sign that you are ready
for a bigger home is that your family is expanding. There are several potential
causes for this. You might decide to get a family dog, for instance. Such a dog
could require a greater area to run about in. Thus your small house won't do.
On the other hand, perhaps you're expecting your very own child, a tiny bundle
of joy. In this situation, you might want to give your child their own room, or
you may even plan to have more kids in the future. Lastly, if you're planning
on taking in a family member or friend for an indefinite amount of time in
order to make everyone feel as comfortable as they can feel, acquiring a larger
home may be the solution.
3. Your Home Feels Incredibly
Cramped
We're all guilty of amassing a sizable collection of belongings that we may or may not need. However, this becomes a bigger issue once these belongings start taking over your home, making it feel incredibly cramped. One solution is acquiring a storage unit. Just like you would make a packing plan for moving to a new location, you should do the same for the belongings you'll relocate to your storage unit. And if you cannot decide where to start, making a packing plan and some quick research will help. On the other hand, sometimes owning a storage unit is not the best choice since the funds you spend on it could help you acquire a larger home. It is on you to weigh in on these different choices, their pros, and cons, and find a way to create a comfortable space you can freely enjoy.
4. You Can't Seem To Find Some
Peace And Quiet
We've all been there, tired from a
long day or working from home and only needing some peace and quiet. But, if
you live with your family in a smaller home, peace, and quiet may seem like a
luxury you cannot afford. With everyone cramped in such limited space, you can
hear your children playing, your wife or husband cooking, and the dogs barking. This creates quite an unsettling ambient for someone that just wants
to rest. Therefore, this is one of the main signs you need a bigger home. A larger home is key to facilitating everyone's needs without going crazy trying to quiet everyone down. And once everyone can have a room of their own to spend
time in, you will finally get the peace and quiet you require.
5. Your Home Can't Facilitate
Your Everyday Life
The first time you've looked for a
home, you might've found one that fits your lifestyle. But, as the years' pass,
your lifestyle will change as well. You may have new hobbies or things you want
to focus on, or you've found yourself entertaining guests more than you ever
have. If you feel your home cannot facilitate such things anymore, it is time
to get a larger home. Prioritize
your current needs and future needs when home searching and find a
home that will hopefully be able to grow with you and your ever-changing
lifestyle.
6. You've Found The Perfect
Location And Home of Your Dreams
A great sign you need a larger
home is that you've actually found one that fits you, your needs, and your
budget. In a seller's market where inventory is low, this can be quite rare,
depending on the demand in your area. Therefore, if you've found a home for you
and your family, it is time to start negotiations as soon as possible, so
someone else doesn't take away your dream and your dream home.
.jpg "A big home with a for sale sign on its large front yard")
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