First Time Buyers: Your first home doesn’t have to be your dream home.
Most likely your first home will not be your dream home. It will be a stepping stone to your dream home.
Look for a home that can grow to meet needs and, per your realtor’s professional advice, one that is going to act as a savings account for you. That means it should be worth more in the next few years than you are paying for it. This is called appreciation. Let’s say a few years go by, you have received a few raises at your job and now you can sell your house. The equity (the cash amount your house is worth over what you paid for it) can go toward the down payment of that dream home!
By buying a home this way, and if you where very careful to make your payments on time or early, your credit scores are going to go up. The next thing you know, your local banker is speaking to you on the street because he wants your responsible business … a few years have gown by and now your net worth is $20000-30000 because of appreciation and home loan balance binging paid down.
Getting a home you can afford now and paying it off on time or early will put you in a better position in the future. Don’t you think it’s worth some small sacrifices like not eating out as much or maybe taking care of the old car a little longer? If so, your dream home is closer than you may think.
Ed Gallimore
Realtor & Principal Broker,
McNeil Real Estate
