Are you feeling crowded and uncomfortable in your current home and want to make an upgrade?

Purchasing a bigger house could solve your problems, but how do you know you’re ready? With an investment this big, you need to be prepared.

The guide below can help show you if it’s time to buy a bigger house or if you should wait until you have everything in order.


Your Credit Score Is Up

If you have a credit score below 740, you may want to wait to apply for that new mortgage. When you buy a new house, especially when it’s a larger house, the mortgage payments will increase.

If you want to get a mortgage with the best interest rate and terms, you need to have very good or excellent credit. Very good credit ranges from 740-799, and excellent is 800 and above.

So, if you fall in that range, it may be time to buy a bigger home!

Your Debt-to-Income Ratio Is Low

Besides your credit, in order to qualify for a mortgage, your debt-to-income ratio has to be below 43%.

To assess your ratio, add up all of your monthly debts and divide them by your gross monthly income. If this number is 43% or below, that larger home is ready for you.

If it’s above 43%, consider waiting until you’ve paid off some of your debt, such as credit cards or student loans.

Your Savings Are Overflowing

Do you have an abundance of money in your savings accounts? Is your emergency fund overflowing?

This is one of the key signs you are ready to sell your old home and upgrade to a new and bigger one.

Generally, you have to put down a deposit to secure a mortgage. The bigger the deposit you put down, the better terms and interest rates you’ll get.

Putting down at least 20% on the home will get you the best mortgage options. It will also help you avoid needing to have mortgage insurance, saving you money in the long run.

If you have a comfortable amount of savings that putting down a 20% deposit won’t put you back, you should consider buying that bigger home.

You’ve Researched New Expenses 

Just like a bigger house means a bigger mortgage, other expenses will also increase.

You’ll most likely be paying higher property taxes, larger utility bills, and extra on maintenance and repairs.

You will also have moving costs, closing costs, and home inspections to think of. If you’re going to do renovations on your new home, that will also add up.

If you have enough money now and enough money for later costs, you’re very prepared to purchase this new home, and you should start looking at the market today!

Time to Buy Your Bigger House 

If you met all of the above criteria, congratulations! It’s time to start looking for your bigger house.

Get out of that cramped, outdated space, and start looking to move into your luxurious, spacious home!

If you’d like some inspiration for your new home, browse through our website for all the latest trends.

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Mashum Mollah
Mashum Mollah is an entrepreneur, founder, and CEO at Viacon, a digital marketing agency that drives visibility, engagement, and proven results. He blogs at

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