Buying your first home is a big milestone—and a big decision. For many first-time buyers, the question comes down to this: Is it better to start small or go all in?
Starter homes and forever homes each have their perks, and figuring out which is right for you depends on your goals, lifestyle, and future plans. Here’s what to consider as you weigh your options.
A starter home is typically a more modest, affordable home that meets your basic needs. These homes often have one to two bedrooms and one bathroom, and they generally range between 750 to 1,250 square feet. Many buyers live in their starter homes for just a few years—long enough to build equity before moving on to a bigger or more permanent residence.
A forever home is just what it sounds like—a place you see yourself settling into for the long haul. These homes are often larger, in a location you love, and designed to accommodate future milestones like growing families or career changes. Forever homes typically cost more, but they may help you avoid multiple moves down the line.
Every home purchase is unique, but here are some key pros and cons to help guide your decision.
Lower upfront cost – Smaller price tags often mean smaller down payments and lower monthly mortgage payments.
Faster entry into homeownership – Buying a starter home can help you get into the market sooner and begin building equity right away.
Simpler upkeep – Less square footage often means fewer repairs, lower utility bills, and less time spent on maintenance.
Potential resale value – In many markets, well-priced starter homes are in high demand and may sell quickly when you’re ready to move on.
Tighter space – You may outgrow a starter home quickly, especially if your family or lifestyle changes.
May need updates – Some affordable homes come with quirks or deferred maintenance.
More competition – Budget-friendly homes are often the most competitive, especially in hot markets.
Moving costs down the road – If you plan to upgrade soon, factor in the expenses of selling, buying, and moving again.
Long-term stability – A forever home can evolve with your life and give you room to grow.
May build more wealth – If all home values appreciate at the same rate, a higher-priced home could yield greater equity gains over time.
Avoid repeat moving costs – With a long-term home, you may skip the added costs of upgrading every few years.
If you’re leaning toward a starter home, keep these tips in mind to make sure it’s a smart investment:
Stick to your budget – Just because you’re approved for a higher mortgage doesn’t mean you need to stretch. Pick a monthly payment that works for your life today.
Consider location – Look for a neighborhood with amenities and access to things that matter to you, whether that’s work, school, or family.
Plan ahead – Is your lifestyle likely to change in the next few years? Make sure your starter home can accommodate life’s near-term milestones.
Keep resale in mind – Even if it’s temporary, you’ll want your home to hold its value. A desirable location, solid structure, and manageable upkeep can go a long way.
There’s no one-size-fits-all answer when it comes to buying your first home. Whether you go small and strategic or hold out for your dream forever home, the right choice is the one that fits your needs—and your budget.
At BankFirst, we’re here to walk with you every step of the way. From pre-qualification to closing, our friendly mortgage team is ready to help you explore your options and make confident decisions.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 454063
www.nmlsconsumeraccess.org
900 Main Street
Columbus, MS, 39701
Phone: (662) 328-2248
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