Starter Home Vs. Dream Home for 1st Time Home Buyers
theresa rolen • January 2, 2025
Why Start with a Smaller, First Home?
Starting with a small, affordable home is a smart idea for many reasons. Let’s break it down:

1. Life Changes
- As people’s lives change, so do their needs. Getting married, having kids, or starting a new job might mean moving in 5-7 years.
- Your first home is like a stepping stone—it helps you get started before moving on to something that fits you better later.
2. Money Smarts
- A smaller home is easier to afford and can help you save money while building home equity (that’s the value of your house minus what you owe on it).
- Houses usually become more valuable over time, and inflation makes mortgage payments feel smaller over the years.
3. The Market Game
- Most people buy what they can afford at first, hoping they’ll earn more money later to get a bigger or better home.
- Selling your first home often gives you extra money to buy your next one!
4. Growing and Changing
- Over time, people want homes that match their personality, goals, or growing families.
Why People Move
- Building Wealth: As your house grows in value and you pay off the loan, you can sell it and use the money for something bigger or better.
- Life Fit: Sometimes, you need more space, better schools, or a shorter drive to work.
- Money Reasons: Moving to a place with lower costs or better opportunities can save money.
Want to Stay in One Home Forever?
If you’re planning to buy a home to live in forever, here’s what to think about:
- Pick a home that works for you now and in the future (like if you get older or your needs change).
- Make sure you can afford it without feeling stressed about money.
- Find a balance between buying something comfortable but not too expensive.
Questions to Think About
Before paying off a house or choosing a forever home, ask yourself:
What Are My Goals?
- Does owning a house fit into my plans for retirement or saving money?
- Will I regret putting too much money into the house if I need it later?
Money and Choices
- Can I pay off the house without running out of money for daily needs or emergencies?
- Could I earn more money by investing instead of paying off the house early?
- If I pay off the house, will I lose tax benefits like mortgage interest deductions?
Loan Details
- Do I have a low-interest mortgage that makes it smarter to keep paying it off slowly?
- Does inflation (the rising cost of things) make keeping a loan more affordable over time?
Being Flexible
- Do I have enough savings for emergencies?
- Am I saving enough for retirement while paying for the house?
- If I need extra money later, could I get a loan or reverse mortgage from the house?
Feelings and Peace of Mind
- Would owning my house outright make me feel calmer and safer?
- Am I paying off the house because I really want to, or because I feel like I should?
Think about these questions and your goals to make smart choices about buying or paying off your home. It’s all about finding what works best for your life! 😊
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When a Pre-Approval Isn’t Actually Approval Why Realtors Can’t Afford to Blindly Trust Every Lender In today’s market, getting an offer accepted isn’t the hard part. Getting it to close is. Lately, I’ve been pulled into multiple “rescue missions”—offers accepted, homes taken off the market, timelines set… only for the deal to start unraveling once underwriting gets involved. Different buyers. Different lenders. Same root problem. A pre-approval that never should’ve been issued . A Real Scenario Realtors Are Seeing More Often A buyer submits what looks like a strong offer. The pre-approval checks the box. Everyone moves forward. But once the file is examined: Less than two years of work history Variable income only (hourly, commission, fluctuating pay) Prior history? Straight out of high school This doesn’t mean the buyer can’t qualify. It does mean the file requires precision , not assumptions. The Truth About Pre-Approvals (This Is the Part That Matters) A pre-approval is only as strong as : the income used to qualify it the guidelines actually followed and the lender who understands the difference between “maybe” and “mortgageable” Variable income + limited history isn’t impossible — but it requires structure, documentation, and time . What it does not tolerate is shortcuts, guesswork, or optimism disguised as confidence. Where Deals Start to Break Many weak pre-approvals rely on: Income that hasn’t been averaged long enough Pay that looks good on paper but doesn’t meet guideline requirements Front-end approvals that haven’t been reviewed by underwriting Everything looks fine—until underwriting gets involved. And underwriting always gets involved. What Buyer’s Agents Should Be Asking (Without Playing Underwriter) You don’t need to know every lending rule. You do need to ask smarter questions. 1. Is the buyer’s income salaried or variable? If it’s variable, averaging and seasoning rules apply. 2. How much of that income is actually being used to qualify? Not projected income. Not potential income. Qualified income. 3. Does the buyer meet the full two-year work history requirement? If not, how is the gap being documented and justified? 4. Has an underwriter reviewed this income yet—or is this a front-end pre-approval? This affects how much risk the seller is taking on. 5. What’s the backup plan if income is reduced or disallowed? Strong lenders already know the answer. If those answers aren’t clear, the offer isn’t strong—no matter the price. Why This Matters for Sellers When a seller accepts a shaky offer: The home comes off the market Showings stop Leverage disappears If the deal collapses late, sellers lose time, momentum, and often negotiating power. A strong offer isn’t just about price. It’s about: financing that survives underwriting a lender who answers the phone and a buyer who is truly qualified The Realtor Takeaway Trust is important. Verification is smarter. The best agents don’t just get contracts signed—they get them closed . Ask better questions. Vet the lender. And remember: hope is not a lending strategy. Book time to chat My Calendar Theresa Rolen, Loan Originator NMLS# 2249004 | Brokerage NMLS #1850081 Cell 913-705-0049 Email Theresa@SummitLendingUSA.com Theresa Rolen Cell (913) 705-0049 Trolen.myjourney@outlook.com
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