Moving up the property ladder is a big decision. After all, you might need to put your current home back on the market and take on a bigger mortgage. Plus, you’ll need to find the right property in a good neighborhood while ensuring it will provide a greater return on your investment in the future.
If you don’t want to make a huge mistake, read the below advice on how to take the next step on the property ladder.
Prep Your Property for Sale
Before you put your first home back on the market, look for ways to add value to the property. By doing so, you could make a bigger down payment on your next home.
For example, you could:
You also could enjoy a faster sale by decluttering your belongings, sprucing up your garden, and adding a fresh lick of neutral paint onto your walls.
Review Your Finances
Your finances might be in better health compared to when you applied for your first mortgage. For example, you might have secured a new job, promotion, or pay raise. As a result, you might be able to afford a bigger down payment or accept a mortgage with a shorter term.
You also must consider whether you can afford a large monthly repayment alongside your other expenses, such as insurance policies, transportation fees, groceries, and utility bills. Plus, consider the items you’ll want to take with you or donate to charity, so you can estimate a budget for furniture and furnishings at your new address.
Find Your Dream Property
Once you have identified your monthly budget, you can start searching for the perfect second home. Make an informed decision by reviewing properties on a comprehensive real estate listing website, such as Kenya Property Centre.
Consider your needs before viewing a property, such as how many bedrooms you’ll need, your kitchen requirements, and the size of the property for your family.
Organize Your Paperwork
You may have applied for your first mortgage many years ago, so you might be unable to recall the paperwork you’ll need to accumulate when applying.
It’s common for a bank to request the following documents:
Speed up the process by organizing the above documents in advance, which could help you enjoy a smoother experience.
Find the Right Mortgage Option
As you will have owned your first home for many months or years, it’s likely you know the right mortgage option for your finances. For example, you might be happy to accept a fixed term mortgage to avoid inflation fluctuations, or you could be willing to accept a variable rate to potentially pay a lower monthly rate. It is, however, important to review the mortgage terms and to compare interest rates at different banks to find the right option for your budget.
So, if you’re thinking of starting a new life in a new home, follow the above tips when attempting to take the next step on the property ladder.
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