For many first-time buyers, the first home that they will purchase will be a starter home. A residential starter home is a home is one that meets your needs right now, that you can sell or rent in the future when your home needs change. A starter home will meet your needs for a short period, such as five years before you need something different from your home. When looking for a starter home, there are a few essential factors that you should consider.

Factor #1: Affordability

When you get pre-approved for a loan, the lender will tell you the maximum amount of money that they are willing to lend you. However, it is essential to note that this is not what you have to borrow; you can borrow far below the maximum limit of what they are willing to lend you.

When purchasing a starter home, you will want to ensure that you can easily afford the monthly payments. You will also want to look for a home that will allow you to make some return on your investment within a five-to-seven-year window. You want to look for a home that you can easily afford, not one that maxes out your borrowing potential.

Factor #2: Lifestyle

Second, when you are looking for a starter home, you are looking for a home that will meet your needs right now. That is why it is important to consider what those needs are, based on your lifestyle. You want a home that fits your lifestyle.

For example, you want a home that will allow you to cut down on your commute to work. You may want a house close to family and friends or close to the activities, you enjoy engaging in. However, don't get so wrapped up in the floorplan of a home that you forget how the house will impact your lifestyle. You want to purchase a home in a location that allows you to continue the lifestyle you enjoy right now or make that lifestyle easier to enjoy.

Don't purchase a home that looks great but gives you an hour commute or puts you far away from the people and things you want to do. A starter home is supposed to make your life easier, not harder.

Factor #3: Maintenance

When you purchase your first home, you have a lot that you will have to learn about taking care of a home. That is why it is easier to buy a home that is well taken care of so that your learning curve is not too steep. If you don't have a background in construction or home improvement, you may want to avoid a fixer-upper home that requires a lot of maintenance. Give yourself a chance to learn what it takes to own a home before you jump into a project that requires more maintenance and coordination on your part.

When purchasing a starter home, choose one that will allow you to start building on your investment in a short period, and don't max out your loans to get there. Choose a home that is easy to take care of to get used to homeownership, and choose a home that enhances and doesn't distract from your lifestyle. A starter home is supposed to get you started on a lifelong journey of homeownership.