Moving homes can be triggered by a variety of things, but the most common reason is space…not enough, or perhaps a little too much.
At some point, the place you thought was your forever home may not meet your needs any longer. If you are growing your family, perhaps your current digs are bursting at the seams. If you are preparing for retirement or thinking about moving cities, a smaller place may be just what you have in mind.
Regardless of if you are moving up or scaling it down, here are a few things you want to consider:
- If you are thinking about making a move before the end of your mortgage term, keep in mind you will need to re-qualify under the current rates.
- Moving before the end of your term means breaking your mortgage. Don’t fret, this just means you will pay a penalty. This amount is dependent on your current mortgage provider and the mortgage product/terms.
- Factor in realtor fees, closing and moving costs
- Realtor fees can be anywhere between 2.5% and 5% depending on where you live
- For closing costs and legal fees, we suggest you budget approx. 1.5% of the purchase price
- Moving costs and miscellaneous
- Put aside approx. $1,000 in moving costs
- In addition, you want to think about setting up your utilities, perhaps upgrading appliances, lighting, a fresh coat of paint, or even new furniture. If you are upsizing then the size of your couch may be too small for your new living room! Same can be said if you are downsizing from a larger home to a condo.