Whether you’re planning to move into a bigger house or buying your first home, you may want to start small. Unfortunately, this can limit your neighborhood choices and may make it hard to sell the house. There are deals out there for bigger houses and better neighborhoods if you’re willing to look and get your hands dirty.

Fixer-Uppers Are an Investment

Buying a fixer-upper can be a great deal if you do your homework. It’s a good idea to find a contractor who you trust and ask them to also serve as your property inspector. A property inspector can look at the current factors of the home, but a contractor will crawl under the house, check the physicals, and let you know what your biggest expenses will be. Spending to beautify your home is a joy but spending to shore up the foundation is not. If the structure is good but the place needs cosmetic work, be honest with yourself about the amount of mess you can tolerate. If living out of the bedroom, a bathroom, and one area of the kitchen for a time is going to make you miserable, don’t buy a fixer-upper.

Have You Explored All Loan Options?

Changes in banking regulations known as current expected credit loss, or CECL, mean that your bank will need to predict your ability to pay over the life of the loan. Your personal equity, including your payment history and all of your assets, will come into question. According to Visible Equity, despite what you may have heard, Q&A factors still apply even under new CECL regulations. You simply have to work with your lender, and make sure you are aware of the numerous factors that can get you a better loan option.

Get Creative

According to Than Merrill, if you’re working hard to improve your credit score but want to keep looking, it’s a good idea to look for motivated sellers. If a house has been on the market for six months, the seller may be willing to finance part of the loan or even carry it for a time. This could mean that you can move into the house, make a mortgage payment to the seller that’s enough to cover the bill, save on rent, save them the payment, and continue to save for your down payment. Make sure to define the terms of this temporary situation so everyone involved is aware of when you will be able to fully finance the deal on your own.

Buying bigger can be a great deal if you buy with care. The difference between buying a fixer-upper or a burner-downer can seriously damage your financial future. Paying for your own inspection may be the best investment you can make on the house you didn’t buy.