Are you currently looking to purchase your very first home, but not sure what you should be considering? Here are some tips for purchasing a residential starter home so that you make a good investment.
Consider the Resale Value
While you may be looking for a home that fits your needs as a starter home, you also want to consider resale value and what other buyers are looking for. For example, you may not be looking to start a family just yet and want only a two-bedroom home, but a family is likely going to want to have 3 bedrooms when it comes time to sell. By purchasing a home with resale value in mind, you won't make a purchase that only applies to people like you.
Consider the Monthly Payment
Your first home purchase is likely going to be earlier in your career when you are not making that much money. That's why it's important to keep your home within the budget that you can afford. You don't want to end up buying a very expensive home and then struggle to make the monthly payment. Be modest with your budget, and try not to shop near the high end of what your mortgage pre-approval is for.
Consider a Fixer Upper
To make a home purchase work within your budget, you may need to purchase a fixer-upper. This means that you are going to be putting the work in to make the home look exactly the way you want it, but you can end up saving a lot of money in the long run. The mortgage lender is not going to allow you to purchase a home that is not structurally sound, but if the only problem is cosmetic damage then it is something that you can likely fix on your own over time once you are in the home.
Consider Your Lifestyle
You also need to think about if the home is going to work for you and your lifestyle at the moment, as well as the potential future if you end up staying in the home. This includes things such as the overall square footage if there is room for you to work from home if that is what you do, and if there is room for a child if you know that a baby is on the way. If it doesn't fit your lifestyle, you may end up regretting the home soon after the purchase is final.