Your First-Home Checklist

4 Things to Consider When Buying a Starter Home

For many people, a “starter home” is not the same as a “dream home,” but that doesn’t mean you have to compromise on everything. An ideal first home is one that will give you room to grow, return on your investment, and meet your highest priorities. Start with these four questions.

1. How Much Money Can You Spend?
It’s pretty simple—you shouldn’t buy a house that you can’t afford. If you’re obtaining a mortgage, however, the exact number of what you can afford can be tricky to calculate.

One of the first things to figure out when looking to purchase your first home is finding the right mortgage lender. Once you pinpoint your lender, you can begin your mortgage pre-approval process. This process will give you the information you need to know how much you can spend on your first home. With your ballpark price, you’ll have a more realistic idea of where you should be looking.

2. How Old is the House?
Another part of your first-home checklist is to ensure you don't buy a house that will cost too much in repairs. Newer isn’t always better, but, generally, older homes will be more likely to require maintenance in your first year of ownership.

On the other hand, a first home that needs a few repairs or upgrades could lower your purchase price. Think about how many repairs you are willing to take on from a financial, motivational, and time perspective. For instance, if you’re willing to update appliances on your own, you may feel open to buying a home with an outdated kitchen.

3. Where is the House Located?
An important decision is where to buy your starter home. Perhaps you want a suburban home close to shopping or a rural home with a large yard. For many people, the home needs to be within a reasonable driving distance of their work. If you’re thinking of a house as your starter home, buy in a neighborhood where you are likely to resell the house quickly when the time comes for you to move out.

4. How Long Do You Plan to Live in the House?
When checking off your list of items to decide on for your first home, discuss the length of time you plan to be in this house. That will allow you to be pickier or more flexible regarding aspects like repairs, layout, and location. Perhaps you’ll want to spend less on repairs if you know you’ll only be in the house a short time, or maybe you’ll want to discuss with a real estate expert if your intended repairs will likely yield a return on investment in just one or two years’ time.

Cake's Approval for First Home Buyers

At Cake, we want your home buying experience to be as easy as slicing cake. We offer pre-approval in just minutes. Call our consultants if you have questions at any point in the process. When you’re ready to begin the process of buying your first home, complete your loan application. Cake is your no-pressure, no-hassle, mortgage-made-easy lender. It’s our mission to help you find the perfect first home.