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Moving Up to a Larger Home When You Still Have Debt

Many families in the Washington, DC metro area consider moving to a larger home while still carrying student loans, a car loan, or a small amount of credit card debt. This is completely normal—and often the right next step when your space no longer fits your routine, your family, or your long-term goals.

Whether you have a growing family, need more room for work-from-home setups, or want a quieter neighborhood, moving up is possible with a clear plan. With more than two decades helping families transition from starter homes to their next chapters, here is a simple guide to making the move confidently and responsibly.

Start With Your Current Monthly Picture

Before looking at larger homes, review your current monthly payments. Lenders focus on:

  • Student loan payments
  • Credit card minimums
  • Car loans
  • Your current mortgage or rent

Your monthly debt—not the total balance—determines your new approval comfortably.

How Debt Affects Your Move-Up Price Range

If your monthly debts are modest

You may qualify for more than expected, especially if your income has increased since your first purchase.

If your monthly debts feel heavy

You may still qualify, but the approved price range may shift. A strategic plan and careful budgeting help you focus on the homes that truly fit.

If your DTI is higher than ideal

Paying down small, high-impact debts or increasing your down payment can make a big difference in approval and comfort.

How to Strengthen Your Position Before You Move Up

1. Make a plan for your current home

If you are selling, the equity can help offset debt or boost your down payment. If you are renting out your home, projected rental income may influence your approval.

2. Reduce high-interest revolving debt

Even lowering a credit card balance by a few hundred dollars can improve your debt-to-income ratio and strengthen your new loan application.

3. Build or maintain reserves

Savings matter more during a move-up purchase than most people expect. They support both underwriting and your financial stability after closing.

4. Get pre-approved early

This helps you understand your realistic price range and how your current debts affect it. It also shapes your buying and selling timeline.

Neighborhoods Where Move-Up Buyers Often Land

Families moving up often prioritize space, schools, green space, and long-term value. Popular choices include:

  • Bethesda & Chevy Chase — Larger single-family homes, parks, strong schools
  • Northwest DC (Spring Valley, Kent, Wesley Heights) — Quiet streets with larger homes and long-term value
  • McLean & Great Falls — More space, privacy, and larger lots
  • Arlington (Lyon Village, Westover, Bluemont) — Proximity to DC with room to grow
  • Potomac & Rockville — Larger homes at a more approachable price point

Your budget, routine, and future plans determine the strongest fit.

Your Move-Up Timeline Matters

Move-up purchases often involve timing your sale and purchase so everything aligns smoothly. I help families structure these transitions by:

  • Reviewing equity in your current home
  • Planning the best listing window
  • Coordinating the sale and purchase timelines
  • Exploring bridge solutions when needed

A well-timed strategy reduces stress and supports your long-term financial comfort.

A Clear Plan for Moving Up While Carrying Debt

Step 1: Evaluate your current home’s value

Your equity can shape your down payment, lower your DTI, or increase your comfort range.

Step 2: Review your monthly debt payments

Identify which debts have the most impact and whether small adjustments can improve your position.

Step 3: Understand your new price range

Pre-approval shows you what is realistic and how to pair the right home with your long-term budget.

Step 4: Compare neighborhoods

I help families evaluate school boundaries, parks, commutes, and long-term value across DC, Maryland, and Virginia.

Step 5: Make a confident, well-structured offer

A strong offer is grounded in strategy, not pressure. I help clients craft clean, competitive terms that align with your financial comfort.

Why Move-Up Buyers Work With Me

Families across the DC region work with me because I understand the financial realities of moving up—especially when debt is still part of the picture. My role is to help you protect your monthly comfort, maximize the value of your current home, and find a larger space that supports your future.

Final Word

Carrying debt does not have to delay your move into a larger home. With the right planning, strong guidance, and a thoughtful strategy, you can move forward confidently and choose a home that supports your family’s next chapter.

About Matt Cheney

Matt Cheney is a top-producing real estate advisor with Compass in Washington, DC, guiding buyers and sellers across DC, Maryland, and Virginia through high-stakes moves, from luxury sales to estate settlements, downsizing, and divorce-related transactions. With over $771 million in career sales volume and 22 years of experience, including more than two decades working on complex and sensitive real estate situations, Matt is known for calm, strategic guidance and brings hundreds of successful sales to clients seeking clarity and support during life transitions.

Get In Touch

With Matt Cheney
matt(dotted)cheney(at)compass(dotted)com 202.465.0707 DC BR600869
MD 582148
VA 0225101950