If you listen to some of the real estate gurus out there, you would think buying a starter home is a big mistake. However, if you are a first time home buyer, buying a starter home makes a lot of sense. It may not have all the glitz and glamour of a newly built home, but it will prove to be one of the best financial decisions you will ever make. Here are a few things you should know about searching for a starter home.
Line up Your Financing before You Start Looking
Most people are tempted to get online and look for the best possible lending rate. Truth be told, you can find great rates right in your local community. Go speak with a few mortgage lenders in your town.
Find out what they have to offer and at what rates. Once you are approved, take your pre-approval letter with you on your house hunt. Having a pre-approval letter can often times give you an edge with the seller.
Be Willing to Bend a Bit
Keep in mind this is just a starter home. This is not the home you plan to spend the rest of your life in. Based on that, you must be willing to bend a bit. There is a good chance you will not find the perfect home.
That's why it is recommended you sit down and make a list of 3 or 4 things you absolutely must have in a home. Everything else can either be added on at a later date, or you can wait until you can afford to purchase them in your dream home.
Make Sure You Pick the Right Location
You will often hear real estate agents say location, location, location. They repeat it three times to let you know how important location is. Even if you are purchasing a starter home, if you purchase it in the right location, everything else will work itself out.
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