Are you considering a bigger house? Do you have a good idea of what you want in a new home? Rather than spending time visiting a variety of house listings, investigate your custom building options at Segal & Morel. We create exceptional houses for home buyers in New Jersey and Pennsylvania.

Signs that You Can Afford a Bigger House

When finding a new home, there is usually one question that people ask themselves. What kind of a house can I afford? If you are applying for a mortgage, you will supply financial information that your lender uses to determine the mortgage you can afford. But you must pay close attention to this financial data, as well, so that you can determine the best use of the financial resources available to you and your family.

Find out whether you can afford a bigger house by examining the following signs.

Low Debt-to-Income Ratio

All mortgage lenders use a debt-to-income ratio to help determine the amount of mortgage available to you. It compares how much debt you owe every month to the amount of pre-tax income you earn. Most lenders want that ratio to be 40% or lower. They also prefer that monthly mortgage payments for a new home will be 28% or less of your monthly income. If your ratio meets these thresholds or is lower, you are in the right place for a bigger mortgage.

Adequate Insurance Payments

There is more to afford than the monthly mortgage payments, however. Your new home will need adequate insurance. And depending on how much of a down payment you make, you may need
mortgage insurance, as well. Take a close look at these numbers. If you can handle these additional house-related payments, you are one step closer to purchasing a bigger house.

Retirement and Savings Goals

This is important for your future needs and family stability. It’s best that a new mortgage payment not interfere with your savings and retirement fund goals. Of course, there are always short-term expenses related to buying a new home and moving. If you anticipate that your goals will largely stay on track, you might be able to afford a bigger house. Your new home will also help you build equity for retirement.

Good Credit Score

A good credit score is a goal worth achieving because it will make future purchase loans, for homes and other big-ticket items, that much easier. A good credit score may also affect the calculations made by mortgage lenders. And there are always expenses related to a new home, bigger or not, such as appliances, landscaping, and furniture. A good credit score will help you with all of these.

If these signs show that you are ready to afford a bigger house, it’s time to choose exactly what you want in your new home.

Trusted Home Builder in NJ and PA

Segal & Morel is a trusted home builder in the Lehigh Valley area. We proudly build energy-efficient, Energy Star Certified green homes. In addition to our focus on Energy Star savings, water efficiency, and safe indoor environments, our homes offer a variety of versatile floor plans, as seen in this virtual tour.

Currently, we are building luxury homes at Riverview Estates West. This planned community is open to people of all ages and is located between the Delaware River and College Hill in Forks Township, Pennsylvania. Community amenities include access to great schools and stellar recreational destinations. Situated on the PA and NJ border, commuters can take advantage of convenient travel options.

Design a Bigger Home with Segal & Morel

At Segal & Morel, we are third-generation builders with 50 years of experience. And we’ve been building green homes in PA and NJ for over a decade. When you are ready to purchase a bigger house, let us help you choose the perfect luxury home located in a premier planned community. Contact us today.