You are ready to buy your first home.
Although you haven’t found it yet, in your mind, it’s perfect! Open floor plan, granite countertops, a walk-in closet, the works!
In reality, you may be one or two more home purchases from your “dream home.” The key to finding the right first home purchase for you is to find the right balance of a home that comes as close to your dream home requirements as possible while staying in budget.
Starter homes exist for a reason. Your first house is probably not going to be the one you’ll live in forever. With salary increases and smart savings plans, the opportunity to move up becomes more real. When you’re ready to jump up to a larger, dreamier home, this first home can provide you with the funds for that purchase.
Older vs New Construction
“New” means new construction or purchased in pre-construction. “Existing” means homes already lived in. Most new construction homes could cost you up to 20% more than a comparable older house. Buying an older home could add up to big savings and allow you to get a bigger piece of the “dream.”
Buy a home that you can add value to, rather than paying more on a new home. Offsetting a big price tag is a very smart move. Get more home for your dollar and improve it over time while having the cash to fund the renovations. The original architectural detail that comes with many fixer-uppers is a dream in the making.
Balancing Dreams and Location
You know how much you can afford and the price range you need to consider. Now it’s time to decide where you want to live and what you can afford. Sure, we all want to live in the swankiest part of town. But your budget may not support that choice. Be prepared for this “price vs. location” battle.
The must-have is essential in your new home. However, a should-have is not essential. Square footage is also a must-have. For a first-time home buyer, 1,600 square feet could be a realistic minimum must-have, whereas 2,300 square feet is a should-have. A nice, clean, functional kitchen is a must-have, but a gourmet kitchen with stainless steel appliances is a should-have. Knowing the difference helps you prioritize.
Call 33.477.2000 and speak with a Lender today! Turn your dreams into a reality!