Movin' on up - Tips for potential move-up buyers:

If your family is growing, you're earning more money than you were five years ago, you want to live in a more desirable neighborhood, or you want a larger or better-appointed house, you might be considering selling your house & "moving up."

There are a host of things you should do as you consider whether now's the time to move up, including:

-Keep your options open. Many 'older' homes have been refurbished, turned them into desirable properties for either new or move-up buyers.

-Get an accurate picture of your financial situation. How much more of a mortgage payment can you really afford? Factor in other debts and expenses and long and short-term savings goals like college for the kids and retirement for you. Lenders generally say your mortgage should be about 25% of your gross monthly income. And always factor in some reserve savings to put aside each month.

-Be realistic about how much you can sell your house for and how much of the proceeds you'll have available for a down payment on your next house. Don't forget closing costs - points, which are extra fees paid to secure a lower interest rate, origination fees, taxes, title insurance, and financing costs. The higher your down payment, the lower your monthly mortgage payment and the possibility of qualifying for a better loan. Freddic Mac says you should expect to pay about two to 7% of the cost of the property.

-Get pre-approved for a loan. This way you'll know if you can get approved and how much you can spend on a house. It also puts you in a stronger position when you ultimately make an offer on a house.

-Be specific about your needs and don't cater to emotion. If you have two kids with another on the way, be on the lookout for houses with plenty of bedrooms and areas to entertain and raise growing children.

-Consider the neighborhood, as well as the individual house. If you have kids, check out the reputation of the schools that your kids would be attending. Contact the local police or sheriff's department to get an idea about crime activity in the area. And factor in the neighborhood's proximity to work, shopping, restaurants, and other important places you'll be frequenting.

-If you're considering an existing house, check out the property's insurance history. This could affect your liability to obtain insurance if you buy it. Begin by making sure your credit report is accurate - credit histories are sometimes used to determine whether a company will insure you, and, if so, at what rate. Also, the Insurance Information Institute says you should get a copy of your loss history report, such as a CLUE report. This is a record of home insurance claims you have filed. If you have not filed any insurance claims in the past 5 years, you won't have a loss history report. The better your report, the better chance you'll have of obtaining reasonably-priced insurance on the house you buy. Ask the seller to provide a copy of their history report, too.

Source: Homestore.com