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  • Megan Cooper

Should You Buy a Forever Home or Starter Home? Here’s What To Consider

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Buying a home is a huge decision. Not only do you have to decide on the location, but you also must choose the right type of home for your family. Will you go with a starter home that you can afford now and upgrade later, or should you purchase your forever home from the outset? Gino Tozzi discusses the pros and cons of each option to help you make an informed decision:

Purchasing a Forever Home

The first option is to buy your forever home. The main benefit of going this route is that you’ll never have to move again. You can settle into the neighborhood and community and create long-lasting roots. Plus, you’ll save money in the long run because you won’t have to pay real estate fees and other costs associated with buying another home.

On the other hand, a forever home will likely be more expensive than a starter home. If you can’t make a large enough down payment, your monthly mortgage payments could be too high for your budget. And if you have unstable job security or you think there’s a chance you have to relocate for work, buying a starter home may be ideal because you won’t be tied down by mortgage.

If you decide to get a forever home, take time to research mortgages from different companies. Use an estimation calculator to determine how much house you can comfortably afford, and learn what lenders typically look at to make decisions about applicants (e.g., income and employment, credit score, loan amount requested, etc.).

Purchasing a Starter Home

As discussed, starter homes are usually more affordable than forever homes. For many families, finding a starter home in your desired neighborhood is ideal. Purchasing a starter home will also give you more flexibility if you need to relocate or encounter other major life changes.

Then again, you must consider whether investing in a starter home is worth it. If you want to settle down in the same area for years to come, paying for real estate fees and other costs associated with the home buying and selling processes could offset any equity gains made from appreciation. Further, if you need more space for a growing family than what your starter home offers, you’ll eventually need to sell it and buy a larger home anyway, forcing you to go through the entire process again.

Getting a Home Warranty

A home warranty is essentially insurance for your appliances and systems, and it helps cover the costs if those items break down unexpectedly within the first year or two of ownership. These warranties are not required, but they can give you peace of mind knowing that if something happens to your AC unit or dishwasher, someone will come and fix it free of charge (or at least at a discounted rate).

So, will a warranty pay for itself? Whether or not to purchase a home warranty comes down to personal preference and how much risk you’re willing or able to take on as a homeowner. Some people like knowing that they have coverage if something goes wrong, but others would rather put the money toward their mortgage or into an emergency fund. Before making a decision, review the home inspection report for any outstanding issues. And inquire about any existing warranties on your home appliances and systems.


Purchasing a home is a major decision that involves many different factors. Consider the pros and cons of forever and starter homes, and remember to carefully evaluate your financial situation before making a decision. Either way, you go, homeownership is an American dream, and you’re making it happen. Make the process easier and less stressful by working with an experienced real estate agent like Gino Tozzi!

Are you looking for a top-notch real estate consultant? Visit today!

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