What do you require versus what do you want?
This is a tough conversation because it means putting your needs and wants into separate categories. You need a three-bedroom home, but you want a fourth for when your mother-in-law visits. You need 1,300 square feet, but you want extra space for the kids to play. You want a backyard, but you need to stay within your budget.
Maybe you want to live in the city, but your finances need you to be 50 miles out. And that’s where the real challenge begins. Some people would rather keep renting and stay where they’re comfortable, even if it means never building wealth. But if homeownership and equity matter to you, it’s time to get serious about your priorities.
Do You Want to Own or Keep Paying Rent?
Ask yourself:
Do I want to build equity, or do I want to keep paying my landlord’s mortgage?
Am I willing to make sacrifices now to own a home in the future?
Am I open to commuting a little further for long-term financial stability?
Many people have moved outside the city, found peace and ownership, and never looked back. It all starts with figuring out what’s a deal-breaker and what you can compromise on.
Understanding Home Affordability
Before you start looking at homes, here’s a general rule:
When buying a single-family home, lenders typically approve around four times your income. So, if you make $100,000/year, you can expect a pre-approval for about $400,000–$450,000.
Multi-family homes work differently. Since rental income helps cover your mortgage, lenders often approve higher loan amounts.
Two-family home → Your rental unit helps you qualify for a bigger loan.
Three-family home → Two rental units boost your pre-approval even more.
Four-family home → Each unit’s rental income counts toward your total income, increasing your loan eligibility.
For example, if each rental unit brings in $1,100/month, that’s an extra $24,000/year in income. This significantly raises your borrowing power.
Marriage Before Mortgage? Think About Investment First
Shoutout to Alex E. Edwards for the concept of “Marriage Before Mortgage”—but let’s take it further.
💡 If you and your partner are not married yet, why not each buy a property?
1. You buy a multi-family property in an affordable city (New Bedford, Fall River, Worcester, Springfield, Providence).
2. Your partner buys a single-family home while you rent out yours.
3. When you combine incomes after marriage, you qualify for a bigger mortgage and buy your dream home.
4. Now, you own two rental properties generating income while living in your ideal home.
The Key Question: What Do You Want vs. What Do You Require?
Many first-time buyers aim for the biggest home possible, but sometimes you need to start small and build up. Maybe a four-family isn’t feasible yet, and that’s okay. What matters is starting somewhere.
Your first home won’t always be your forever home—but it can be your first step to generational wealth.
If you’re ready to take that step, start today. Research, plan, and prioritize. Your future self will thank you.
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