Looking to buy your first home?
Youve likely heard the advice that theres not a ton of pressure when you first enter the housing market.
After all, youre just looking for a starter home, right?
Credit: Julie Soefer
Your pick wont be the place you live forever, so why stress too much about it?
Maybe so, maybe not, is what experts say about the modern house-buying cycle.
In some markets, that could be a one- or two-bedroom apartment condo.
Credit: Stacy Zarin Goldberg
In other markets that could be a townhome or asmall single detached ranch.
In most cases its a home that is under the median price point for the local market.
Starter homes have different definitions for different people.
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Starter homes are generally one- or two-bed properties.
Buyers with limited financial means generally consider starter homes.
However, this is also dependent on factors like mortgage, income, housing inventory, et cetera.
Credit: Jon Jensen
And if you find yourself totally happy to stay in your starter home long-term, thats fine, too.
In addition, double-check your commute to work and other key locations is manageable.
If thats the case, you might be willing to make a few improvements.
Are You Ready for a Starter Home?
In almost all cases, it is prudent to be an owner and not a renter, Gross says.
When you are renting, you are paying down someone elses principal on their mortgage.
The landlord benefits from the appreciation, depreciation.
If you do not qualify for a conventional mortgage, FHA loans are a reliable choice, he says.
When it comes to starter homes, you might want to spend less than you are approved for.
Taking on a larger mortgage might cause financial difficulties moving forward.
