From Starter to Forever Home: How to Navigate Each Phase of Homeownership

In this episode:

00:00 – 11:14: Intro and Advice for the First-Time Homebuyer
11:15 – 18:44: Considerations for Moving Into Your Next Home
18:45 – 24:23: Forever Home Tips and the Concept of “Aging in Place”
24:24 – 26:15: The Difference Between Second Homes vs. Investment Properties
26:16 – 27:46: Final Thoughts and Closing

In this episode of the Your Money. Your Mission. podcast, host Kelly Mould and VP of Mortgage Services Loren Fellows, cover the various stages of homeownership. Whether you’re a first-time homebuyer, considering your next move or looking to buy a second home, this episode is packed with valuable insights and practical advice to help you make informed decisions no matter what phase you’re in.

5 Takeaways for the First-Time Homebuyer:

1. Understand All Financial Numbers: Consider property taxes, homeowner's insurance and maintenance costs.
2. Get a Fully Underwritten Pre-Approval: This ensures you are a serious buyer and helps avoid heartbreak.
3. Explore Grants and Down Payment Assistance Programs: Reduce the initial financial burden with programs that offer lower down payments or cover closing costs.
4. Set Aside an Emergency Fund: Prepare for unexpected expenses by having a financial buffer.
5. Consider the Neighborhood and Lifestyle Impact: Choose a home that aligns with your current and future needs, such as good schools and a growing neighborhood.

4 Takeaways for Buying Your Next Home:

1. Focus on Lifestyle Changes: Consider factors like needing more space or a home in a different location.
2. Leverage Equity from Your Current Home: Use the equity to manage overall expenses and make a more substantial down payment.
3. Consider Differences in Mortgage Terms and Interest Rates: Understand that mortgage terms and interest rates can vary between a second home and an investment property.
4. Obtain a Pre-Approval: Getting pre-approved is not only one of the first steps to purchasing a home, but also helps you define your budget and strengthen your position as a serious buyer.

3 Takeaways for Aging in Place:

1. Plan for Potential Changes in Income and Healthcare Expenses: Ensure your financial plan accounts for future changes.
2. Choose a Home That Can Accommodate Aging: Look for features like zero steps, wider door frames or a condo with exterior maintenance handled by an HOA.
3. Emphasize Long-Term Comfort and Safety: Select a home that will support your needs and ensure your comfort as you age.

Investment Property vs. Second Home Takeaways:

From your first home to the one you'll call home for years to come, each phase of homeownership requires thoughtful planning and informed choices. By understanding your numbers, considering your lifestyle and future needs and seeking professional guidance, you can ensure both financial well-being and a lifestyle that supports your long-term vision.