Buying a home is exciting. Most people have visualized their dream home—large, inviting kitchen; multiple bedrooms for family and guests; perhaps a backyard with built-in BBQ, pool, and fireplace. Yet this dream is often out of reach financially for first-time homebuyers. These buyers are ready to find a starter home and perhaps are wondering if saving for a forever home makes more financial sense.  

Before making this decision, it’s important to consult with a professional financial advisor about your unique situation; more often than not, getting a starter home makes the most sense. A mortgage lender who specializes in first time home buyers will know about programs and possibly grant money that can get you on your path to home ownership.

Things to Look For in a Starter Home vs. a Forever Home

As we already mentioned, a starter home probably won’t have all the features you dream about, so it’s important to understand the difference between “want” features and “need” features. For instance, the number of bedrooms might be more critical than an eat-in kitchen and separate dining room. Finding a home near a park for the kids might take precedence over a large yard.   

You’ve also heard the adage, “location, location, location”. Look for a home that is in or borders your target neighborhood and be open to finding a home that has the potential to increase in value with some sweat equity. In other words – don’t be afraid to buy an “ugly” home. If the roof and foundation are in sound condition and the mechanicals, electrical, and plumbing are up to date, cosmetic changes and updates can be made as your budget allows for it.

Focus on affordability and find a home that suits not only your immediate needs but offers the ability to grow in equity. Your starter home should be viewed as a financial tool to build wealth and position you to move up to your forever home. Building wealth through homeownership is a great way to ensure you’ll be able to buy that dream home when you’re ready. 

Follow me on Facebook, Instagram, Twitter, Pinterest, or LinkedIn and let’s talk about your home goals for 2022!

Buy, sell, rent, or invest – contact me today.