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Upgrading Your Home

Buying a home is one of the most significant investments you’ll ever make. But what happens when your current home no longer fits your evolving needs? Whether it’s due to marriage, having kids, seeking better schools, or simply needing more space, upgrading your home can be an exciting but complex process.

Why Upgrade Your Home

Marriage and Family Growth

Marriage often leads to the desire for a larger home, especially if you’re planning on starting a family. A bigger house provides more space for children to grow and play, making it a safer, more comfortable environment for them.

Seeking Better Schools

Relocating to a neighborhood with better schools is another common reason for upgrading a home. Education is a top priority for many families, and living in a district with highly rated schools can greatly benefit your children’s learning experience.

Need for More Space

As time goes on, your need for space may increase. You may want a larger kitchen, an extra bedroom, a home office, or a spacious backyard. Upgrading your home allows you to tailor your living space to your changing needs and lifestyle.

Financial Considerations: To Sell or Not to Sell?

When upgrading, one of the biggest decisions you’ll have to make is what to do with your current home. Here are some options:

Selling Your Current Home

Selling your existing home can provide a significant down payment for your new one. This can reduce your new mortgage payments and potentially allow you to afford a larger, nicer home.

Including Your Current Home in Your Debt-to-Income Ratio

If you choose not to sell, your current mortgage along with the taxes and insurance can be included in your debt-to-income (DTI) ratio. This can affect your borrowing capacity, so it’s important to consult with a loan officer to understand the implications.

Using Your Current Home as a Rental Property

Turning your current home into a rental property can provide a steady stream of income. Lenders typically consider 75% of rental income when calculating your DTI. However, there are usually specific requirements to meet, such as:

Proving Rental Income

To use rental income, you need to provide a copy of the lease and proof of payment for a few months. When landlords receive first, last, and security deposit, it often satisfies this condition.

Appraisal Form 1007

Alternatively, you can utilize Appraisal Form 1007. This form is an essential tool used in the real estate industry that provides a rent schedule and reveals the estimated market rent of a property.

The market rent is determined by comparing your property with similar rental properties in the area. This comparison considers various factors such as the size, location, and features of the property. The resulting estimate provides a realistic figure of how much income the property may generate if rented out.

Using the Appraisal Form 1007 can be particularly beneficial if you haven’t yet rented out your property or if the current lease does not accurately reflect the current market rent. It offers you a clear, unbiased view of potential rental income, allowing you to make informed decisions about whether to rent out your existing home when upgrading to a new one.


Upgrading your home is indeed a significant decision that requires meticulous planning and strategic financial management. It involves not just the excitement of moving into a larger space or a better neighborhood, but also the intricate process of handling your existing property and planning your finances right.

At Innovative Mortgage Brokers, we understand the complexities involved in this process. We’re not just a mortgage broker; we’re your partner in this journey, committed to assisting you navigate through these financial decisions with ease and confidence.

Serving Pennsylvania (PA) and Florida (FL), our team brings local market knowledge, financial expertise, and a client-centric approach. Our goal is to ensure that you have a seamless and successful transition from your current home to your dream one.

Whether you’re expanding your family, seeking access to superior schools for your children, desiring more room for your evolving lifestyle, or any other reason propelling your move – we’re here to support you. We provide comprehensive financial guidance tailored to your unique needs and circumstances, empowering you to make well-informed decisions.

With Innovative Mortgage Brokers by your side, the dream of upgrading your home becomes more attainable if you are looking to purchase in Pennsylvania (PA) and Florida (FL). We can help turn your visions of a perfect home into a beautiful reality, ensuring your new house is a place where you can create lasting memories and enjoy the space you’ve always desired.

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