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Getting Ready for a Starter Home: What's Involved

The iServe Blog


A new trend in real estate is the increased demand for starter homes by millennials. Though it's difficult to track home ownership by age, recent figures suggest that starter homes may be the next hot real estate market. These indicators include new household numbers twice that of new household rentals, suggesting that the millennial generation is more interested in buying than renting their first home. But what do you need to do to prepare for a starter home and what's involved in the process? Here are the basics on the residential mortgage application, residential lending and residential home loans.

Getting Ready for a Starter Home: What's Involved

What is a starter home?

A starter home is an entry-level piece of real estate. It typically features a smaller price tag, but also has a smaller footprint. Many first-time homeowners have lower incomes and shorter credit histories than their older counterparts, so purchasing a home that is in a more economical price range makes sense. It may also allow them to build up equity in their home before selling it, giving them a larger down payment on their next residential home loan.

What should I look for in a starter home?

Because a starter home will need to meet your needs for a number of years, you will probably need to make some compromises. Is it located close to your job? Do you need a highly functional kitchen to save money for your residential lending payment compared to going out for meals? If you're considering expanding your family, will the starter home meet your needs? Because you probably won't get everything you want in a starter home, it's important that you prioritize your list. Because your home may be an investment, consider the neighborhood, school system and similar concerns before committing to a particular home.

What do I need to know about financing?

Before you look at residential mortgage services or fill out a residential mortgage application, you may want to start by reviewing your credit report from all three agencies. If you find any errors or omissions, get them corrected as quickly as possible to ensure your credit history is in good condition before looking at residential lending options. Another area to consider is whether you qualify for an FHA or VA loan. After this, you can begin talking to residential mortgage services and consider filling out a residential mortgage application.

By knowing what to expect when buying a starter home, you may be in a much better position to get favorable terms, negotiate the right price or otherwise come out ahead when working with real estate agents and residential mortgage services. At iServe Residential Lending, LLC, we focus on making residential lending an easier process, from an online residential mortgage application to residential home loans that meet your needs. When you're ready to come home, contact one of our mortgage loan originators in residential mortgage services to get started.

 

 

 

iServe Residential Lending, LLC is not affiliated with or acting on behalf of or at the direction of the VA or the Federal Government.

Programs, terms and guidelines subject to change without notice. Not all applicants may qualify. All loans subject to underwriter and investor approval. Arizona Mortgage Banking License BK-0920658; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, CRML License  413-0646; Colorado Supervised Lender #988552; Georgia Residential Mortgage Licensee License #19613; Licensed by the New Jersey Department of Banking and Insurance License # 512567; Licensed Mortgage Banker—New York State Department of Financial Services License # B501014; (www.nmlsconsumeraccess.org). iServe Residential Lending, LLC, NMLS #2914-15015 Avenue of Science Suite 250, San Diego, CA 92128 Phone: (858) 486-4169