Starter House Or Forever Home? Considerations When Buying Your First Place

Buying a home is exciting. It’s also one of the most significant financial decisions you’ll ever make. So you want to get it right — and you want to get it right the first time.

If you’re buying your first home, you may wonder if you should buy a “starter” home or a “forever” home.

Will you grow out of a starter home too soon? Is spending more to buy a home you will live in longer a smarter decision?

What to Consider Before Buying Your First Home

Before you base a decision on your wants and needs alone, there are some other, crucial factors you’ll want to take into consideration.

Your Finances

How much can you really afford? How do a mortgage payment and other costs of home ownership fit into your budget?

Don’t just calculate the down payment and mortgage payments, but all the expenses of home ownership.

Property taxes and homeowner’s insurance will be added onto your monthly mortgage payment. Also, if you don’t have a 20% down payment, most lenders require you pay private mortgage insurance (PMI) each month.