When you have a growing family, what was once the perfect space for you and your family can start to feel too small. It is only natural that you may start to dream of a bigger space to better suit your needs, but it is not sensible to upsize youer home unless you can truly afford it.
With that in mind, let’s take a look at the signs that you probably can afford to buy a bigger home and give your family the space they need:
1. You have a low debt to income ratio
Buying a bigger home when you are servicing a lot of debt is really not a smart idea because you could end up getting out of your depth, unable to afford both your debt repayments and your increased mortgage costs. So, if you have a low level of debt compared to your income, it is a good sign that you may be able to afford to move to a bigger place.
2. Your finances are in good shape
It would be madness to think about moving to a bigger home if your finances were not in good order, If you are earning enough not only to meet your basic needs and wants but also to pay into a pension, invest in savings and build up a modest emergency fund with plenty to spare, then you are sure to be in an excellent position to buy.
3. Mortgage quotes are promising
If, after putting all of your details into a home loan calculator, your mortgage quotes are more than good enough to secure you a bigger home, this is a pretty big sign that you should be able to afford the move because most mortgage lenders err on the idea of caution when it comes to the amount they are willing to let you borrow.
4. You’re fully insured
If you and your partner are fully insured for life, loss of income and any other essentials, then you can probably afford to upsize your home without having to worry too much about the security of each other and your family should the worst happen. If you have all of the right insurance, then the mortgage should still get paid and you should not struggle unduly even if the unexpected happens, which is why everyone who owns a home and has a family should be serious about getting themselves insured.
5. You have a decent credit score
If you have a high credit score, getting a bigger mortgage will be all the easier, so check your score, and improve it where you can before you approach a mortgage lender.,
If you have spotted most of these signs in your personal and financial life, then there is every chance that you will be able to afford a bigger home, but it is still a decision that you should not make lightly, so be sure to sit down, think through all of the pros and cons, and crunch all of the relevant numbers, before you go ahead.