If you’ve just received approval from a lender for a mortgage loan and you’re ready to buy your first home, there are several valid reasons why you should consider a starter home.
Instead of battling to afford your dream home right away, choosing a starter home means you will enjoy more financial comfort, which can further enable you to afford your dream home later. Buying a cheaper home now can mean paying off a mortgage loan sooner.
A starter home is defined as the first property an individual or family can afford. More often than not, these properties are typically smaller and suitable for the next five to ten years. Therefore, apartment units, condominiums, and smaller lot-size properties are relevant as starter homes.
That said, when it comes to finding the right starter home, these tips will guide you in the right direction.
Determine Your Budget
Before you can even get to start shopping around, you’ll need to know what price range you should devote your attention to; it’s no use booking viewings for properties you simply cannot afford just yet.
When creating your budget, consider the extra costs of buying a home. Some hidden expenses include property taxes, maintenance costs, utilities, and a few others.
Browse Listings Online
Unfortunately, viewing properties the traditional way can take forever. Fortunately, with modern technology like virtual tours and online listings, you can determine whether a property is worth viewing physically from the comfort of your own home.
Use real estate platforms to find homes for sale in Atlanta and other areas of potential. When browsing listings, use available filter settings to narrow down your search results; doing this will ensure you are only viewing properties that compliment your budget and your living needs.
Be Willing To Compromise
Because buying a starter home means you are planning to buy your dream home later, it’s essential to be willing to compromise on some details.
Whether you compromise some space or home features, you’ll save money in the process, which makes your dream of purchasing your forever home more reachable.
Determine Long-Term Intention
In addition to the above, another way to determine which property is perfect, consider the property’s long-term purpose to you. When you eventually buy your dream home, will you sell your starter home? In this case, you must consider profitability, neighborhood value, and other relevant factors that will later determine how easy and probable it will be to sell the property.
Otherwise, if you are planning to rent the property as a landlord, you must consider factors like ongoing maintenance costs, relevant rent profit margins, and the property’s suitability as a rental.
Location
Whether you are investing in a starter home or you’re forever home, an essential factor to weigh in when buying real estate of any kind is location. After all there is a good reason why the pros say the three most important criteria to consider when buying real estate are always: location, location, and location!
The location of a property can uphold or risk value over the years. So, it’s essential to look for home hunting red flags like properties located on busy roads or near highways, dilapidated homes in the neighborhood, and numerous listings for sale in the same community.
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