Homebuyers and realtor finding a starter homeAmeriSave Mortgage Corporation

Finding A Starter Home In A Competitive Market

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Congratulations on embarking on your journey to purchase your first home! As you start your search, you might wonder where all the starter homes are and how to compete amidst multiple offers.

The housing market currently faces a shortage of starter homes in popular areas. Low inventory and high demand are driving up prices, creating competitive bidding situations, which can be challenging for first-time buyers. But don’t lose hope! Despite the competitive market, there are steps you can take to position yourself ahead of others. We’re here to guide you through strategies that can help you secure your starter home. What is a starter home? It’s typically a smaller, more affordable home ideal for first-time buyers looking to build equity and establish homeownership. These homes usually have fewer amenities and are a steppingstone before moving to a larger, more permanent residence as life circumstances change. In contrast, a forever home is for those planning long-term residency, with larger sizes and more amenities to accommodate future needs.

Wondering if a starter home is right for you? Consider the pros and cons:

Pros:

  • Affordability: Lower price points and potential for lower down payments.
  • Easier upkeep: Less maintenance compared to larger homes.
  • Flexibility: Opportunity to upgrade to a larger space in a few years.

Cons:

  • Competition: High demand can lead to competitive bidding.
  • Smaller size: Limited space for future growth.
  • Less customization: Fewer options for major upgrades.

Top Tips for Buying Your First Home in a Competitive Market

If you’ve decided on buying a starter home, navigating a market with limited inventory can be challenging. Here’s how to increase your chances of success:

  1. Get Pre-Approved: Obtain a pre-approval letter to show sellers you’re a serious buyer. AmeriSave offers a Certified Approval feature, giving you a competitive edge with a quick credit approval process. A general idea of the rate you could get
  2. Keep an Open Mind: Your first home may not be your forever home. Be flexible about amenities and location to find a suitable starter home.
  3. Use Professionals: Work with a real estate agent and mortgage banker who understand your local market and can guide you through the buying process.
  4. Understand Your Needs: Consider your current and future needs in terms of space, location, and amenities. Evaluate schools, commute options, and neighborhood convenience.
  5. Make a Strong Offer: With pre-approval, make a compelling offer in a competitive market where bidding wars are common.  Being preapproved for a mortgage
  6. Consider Financial Benefits: Compare the advantages of homeownership such as building equity and potential tax deductions against renting.
  7. Budget Wisely: Plan your budget carefully, including down payment options and monthly mortgage expenses. AmeriSave offers various mortgage programs to suit different financial situations.
  8. Tax Considerations: Explore available tax benefits like the mortgage interest deduction and any applicable first-time homebuyer programs. Guide on tax deductions for homeowners

Whether you’re eyeing a starter home or something more permanent, AmeriSave’s mortgage bankers are here to support you through the entire home buying journey.

 

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