For those of you planning to join the ranks of American homebuyers for the first time this year, you’d probably like to know what makes an ideal starter home.
That’s a great question! Unfortunately, the answer can be vastly different depending on who you ask. Many young couples jump straight to the four-bedroom, 3,000-plus-square-foot home with hardwood floors and a gourmet kitchen. They skip what we normally think of as a starter home—an older, slightly outdated ranch or bungalow with “lots of potential.”
But for bank-qualified first-time buyers, the lure of the instant dream home is often too strong to resist. Josh and Katie Bates have battled that temptation in the quest for their own starter home. They’d been renting a condo about a half-hour outside Houston, TX, since they married five years ago. While they are still in the early stages of their careers, Josh, age 30, and Katie, age 28, feel secure enough with their incomes as a commercial photographer and an event planner to get their foot in the door of their real estate market.
All they know right now is that they want a good value on as much home as they can afford. To figure out exactly what that means, Josh and Katie did some research before they contacted a real estate agent.
Twist Number One: Over-Qualification Read More