How I Bought My First Home in my 20’s

Hello again everyone!

Every time I tell someone I own a condo they flip out as if it’s something people truly can’t achieve until they’re at least 30 with a family. Which is false. The home buying process for me was super easy and I found my dream condo in less than a week. I would recommend home buying to anyone that plans to live in the same area for awhile. I always knew I would want a home in my beautiful hometown, so there was no hesitation when the thought of home buying came into the picture. Even if I do decide to leave, I can rent this place out and have it become another source of income in the future. Think about it this way, by the time I’m ready to retire this home will be paid for in full and I won’t have to worry about a mortgage ever again. If you are thinking about buying a home but are hesitant because the process seems overwhelming and difficult, trust me it isn’t. After months of planning my dream home became reality and here’s how I did it!

Build Good Credit

The most important piece of the home buying puzzle to me, is building good credit. Without credit your dream home may not be as easily accessible. Financial institutions aren’t going to hand out checks to anyone. Paying off debts, lowering your balances on credit cards, not making late payments are a few ways I know of to help better your credit. Just be smart with your purchases, do not over extend yourself with a ton of different lines of credit. It will only hurt you in the long run.

Save, Save, Save

Save money like crazy for a while before you start the home buying process. There are quite a bit of upfront costs you have to pay once you find the home you want. Don’t worry though, for me these costs weren’t too bad. Considering my mortgage is half the cost that most of my friends pay in rent, I’ll take the upfront costs over renting any day! The costs you can expect to pay once you make an offer on a home are;

  • Inspection fee, mine was only $250 but, depending on where you live and the company you chose to do your inspection this can vary.
  • Down Payment, there are so many first time home buyer resources you can use. Depending on the type of home loan you receive you may not even have to put any of your own money down. For me, the loan I received actually covered my down payment as well. The great thing about it was as long as I keep this home for a certain amount of time I won’t have to pay that money back ever!
  • Closing costs, this is where things get expensive. In some cases, the seller will pay all of the closing costs, which is awesome. Closing costs are about 2% of the home price. For me, the seller paid some of the costs but not all of them. I had to come out of pocket with a little over $2,000. Don’t fret though, as someone who just graduated from college and just started a career I definitely did not have two grand I could just give away. If you’ve been working for the same company for awhile typically you have some type of 401K plan. Which is what I used for my closing costs. Try looking into something like that if you don’t have as much money saved as you’d like.
  • Cash reserves, you will need to keep at least two months worth of payments in your bank account over the course of a few months. You’ll have to send the company financing your loan a few months of bank statements. With that being said, just be aware of your spending habits during this time. Try not to go over your budget. This can delay the process.

I know that seems like a lot, but I promise the fees that go into the process are well worth it. Like I said earlier, my mortgage is more than half of what I would pay if I was renting this exact same space. It was well worth the investment in my opinion. Just save your money for awhile and before you know it you will have something to call your own in no time!

Get Pre-Approved

Before even contacting a realtor you will want to get pre-approved for a home loan. This way, you will know exactly how much home a lender is willing give you money for. If you have a realtor you would like to use in mind, typically they can get you in contact with a trusted mortgage corporation. You could also try websites like Quicken Loans and Lending Tree.

Find an Awesome Realtor

Finding a realtor can be tough. I lucked out and found a great one here in the Charlotte area who helped me find exactly what I was looking for as far as price range and level of “chic-ness.” If you are interested feel free to leave me a comment below and I’d be happy to give you his info! I would recommend asking your friends and family if they have an relators they trust. Your realtor will be your main liaison with every party involved in the process. You want to make sure you have someone that will have your best interest at heart, that’s not just looking for a check.

Once you do all of these things you will be set to finding your dream home! Just remember to be patient and NEVER settle. You are making a pretty large investment in your future and yourself in general so don’t get anything less than your deserve. Just keep working hard and the perfect home will come to you when it’s time!

As always,

Keep defining yourself,

 

 

 

 

 

 

 

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