How Much Equity Do I Need to Upgrade From My First Home in the Greater Tulsa Area?

There's no single amount of equity you need to upgrade. Your equity is the starting point for your next home, and how far it goes depends on three numbers: what your home will sell for, what you still owe, and what you'll need for a down payment and closing costs on your next home. Your lender tells you that last number, and many first-time homeowners have more buying power than they expect.

Whether you're upgrading in Tulsa, Broken Arrow, Jenks, Owasso, Collinsville, Coweta, Glenpool, or Catoosa, the same three numbers tell you where you stand.

I'm Christina Shortsleeve, a REALTOR® with REMAX Results, and I help first-time homeowners across the Greater Tulsa Area sell their starter home and buy the next one with a clear plan.

Home equity is the difference between what your home is worth today and what you still owe on your mortgage. If your home would sell for $295,000 and your loan balance is $220,000, you have about $75,000 in equity before the costs of selling.

That's an example, not your number. Your equity grows two ways: every payment lowers your loan balance, and your home's value can rise over time.

Your real equity is what you walk away with after the sale, not the number on paper. To find it, you need:

• A current home value. Based on recent sales of homes like yours, not an online estimate.
• Your loan payoff amount. Your lender can give you the exact payoff, which is slightly different from the balance on your statement.
• Your selling costs. The costs of selling come out of your sale price at closing.

Before you list, I prepare an estimated net sheet that puts all three together, so you know what you're likely to walk away with before you start looking. My article on what it costs to sell a house in Oklahoma walks through the selling costs.

Your equity can go toward:

• Your down payment on the next home.
• Your closing costs on the next home.
• A cushion for moving costs and the first few months in your new home.

How much you'll need for a down payment depends on your loan, so ask your lender which options are available to you.

Enough equity is the amount that covers your down payment and closing costs on the next home, with a monthly payment you're comfortable with. That's why I start with the numbers, not the listings.

It's the second step of The Next Chapter, my system for first-time homeowners ready to upgrade: Discover, Run the Numbers, Choose the Path, Prepare and Position, and Coordinate the Move. Once you know your equity and what your lender approves, you can decide whether to sell first, buy first, or make a contingent offer. My article on selling your starter home and buying your next one walks through each path.

• Counting equity before selling costs. What you walk away with is less than your home's value minus your loan.
• Using an online estimate as your home value. Recent sales of homes like yours tell you more.
• Shopping before talking to a lender. Your lender tells you what you qualify for on the next home.
• Spending every dollar on the down payment. Keep a cushion for closing costs and the move.

How much equity do I need to buy a bigger house?

There's no single number. You need enough to cover your down payment and closing costs on the next home. Your lender can tell you how much your loan requires.

How do I find out how much equity I have?

Start with a current home value based on recent sales, subtract your loan payoff, then subtract your selling costs. An estimated net sheet puts it all together.

Can I use the equity from my house for a down payment?

Yes. When you sell, your proceeds can go toward the down payment and closing costs on your next home.

Do I need 20% down to upgrade?

Not always. Your lender can walk you through the down payment options for your next loan.

If you're thinking about upgrading, start with a complimentary home value, and when you're ready, send me a message. I'll help you run the numbers on your current home and your next one, so you know exactly where you stand before you start looking.

Christina Shortsleeve is a REALTOR® with REMAX Results in the Greater Tulsa Area, helping first-time buyers, homeowners ready to upgrade, and downsizers buy and sell with a clear plan. She has sold 127 homes since 2020.