Honing an engine to increase the bore size by 0.020" is fairly difficult, especially the first time you attempt this job, and it will not give a result that is nearly as good as a new block, or even a moderately used block.
My personal approach is to measure the bore and if it is more than 0.002" oversize in the worst spot, I start watching for a junk block I can buy for almost nothing.
In other words, what you are now doing is fairly similar to what I would have done in your place. Remember, you will need to check the bore of that replacement block, in case it is worn substantially more than you want.
