Becoming A Young Home Owner: The First Steps



Owning my home has been the dream of mine for the past few years,  Even before I met my fiancé, I new I wanted to buy a condo, a small house or whatever I would be able to afford around the age of 25.  I now get to share this dream with him and we have been planning this big project or a while now.  

Buying a house is probably the biggest purchase we will ever make and that's why it's important to start preparing for it a few years in advance.  Our goal is to take that step next year so I will be sharing what we have done until now: 


Save for a down  payment as early as possible
Because I have had the plan to own a house by the age of 25 for years, I started saving for a down payment when I was still a teenager.  It may seem kind of crazy but I'm so glad I did.  I have always been really cautious about what I spend my money on and that's what's has help me to grow my savings.  The problem if you start saving only when you decide to buy a house in the next few months is that you will have to make a lot of sacrifices in order to do so and you might not be able to save enough on time.  Save yourself some stress and don't make that mistake people!

Make up your mind on what kind of house you would like
Every month or so, we will have a little house shopping session online to see what it available in our area.  It's always a conversation starter for us: we will start talking about what we like and don't like, what is the most important to us in a house, what type of neighborhood we would like to live in and so on.  Once we become serious house shopper, we won't be wasting our time touring houses that don't meet our priority list.  Looking up houses online have also helped us figure out the market: we now know how fast house usually sell and how much the owners get for them.

Talk to new home owners
 Because the home buying process is fresh in their minds, they usually have tips and tricks to make it smoother.  Some of them will tell you they made mistakes and that they would do this or that differently.  Listen and take notes, it might help you in the future.  For example, I have learned that it's worth waiting a year or two if you can't find a house that meet your expectations.  I know people that made the mistake to move into a house they didn't really like because they didn't want to wait and save for another year.  They ended up having regrets about it...

Make a budget
Will you be able to live comfortably while making your mortgage payments?  The only way to know  is to make a budget.   You need to know how much you spend and how much you earn every month.  Then add the cost of home ownership to the equation and see if it still works.  If it does, great! If not, you may want to consider buying a smaller house than what you originally wanted or wait a few years until you have a higher income.  Why should I be thinking about that so early on?  Because you want to have realistic expectations of what you can afford and when you will be able to afford it!

If you own a house, please share your tips!
If you don't, have you started to prepare for home ownership?

10 comments:

  1. My biggest tip is that when you find a house, be ready to move quickly with so many steps. The offer, the earnest money, the loan officer visits, producing paperwork asap, making phone calls, setting up inspection appointments, and also be ready to explain a lot of the money that comes into your bank account if you're applying for a first mortgage. I felt like my entire life was on display to about 10 different people during the process, but it's necessary to get all the first-time buyer perks with your loan.

    Also, do NOT be afraid to demand steady and frequent communication with your loan. We had a terrible time getting information from our loan officers. It was really hard to get information out of them, and they tended to make me feel crazy when I would ask for updates. It's a stressful process that would have been so much easier if people would just communicate. Keep on top of that!

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    1. Wow. Thank you so much for taking the time to give me advice on your home buying process! I will definitely go back to your comment in a few months when we are house shopping seriously!

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  2. Thanks for sharing! My husband and I got married last year and now, at 25, hope to be homeowners by our first anniversary. It's going to be a huge undertaking and require a lot of diligent saving, but I hope we can do it!

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    1. Good luck with that project! How exciting!

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  3. Awesome post and great advice! I bought my home when I was 26. The process went pretty smoothly and I like yourself, had started saving way earlier. One thing we must remember is, owning a home is a huge responsibility. Depending on the area, there's association fees, repairs for household items and so forth, so that is always good to remember. Also, I would suggest looking into a Home Improvement Contract Warranty where some of your household items can be under warranty for repairs. Happy hunting!

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  4. My hubby and I were home owners a month before we got married. We found a great little house in a perfect neighborhood that was owned by an elderly person who passed away. Needless to say, the house needed some updating and so we figured with the updates, we could live in it for a couple of years and sell for a profit because of the neighborhood and we did!! We then used that profit for the down payment on the home we are in now which we call our "forever" home because we aren't moving ever again!! <3 Christine, The Choosy Mommy, www.choosykids.blogspot.com

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    1. That was a smart move! I don't know if we could do it because we are absolute dummies when it come to construction!

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  5. These are GREAT tips. I wish I had started saving for a home sooner, but I was not thinking of the future. Lately, we have been talking about homes and I hope that someday soon we will have the guts to take the plunge and just do it. I pinned this so that I can share it with the mister!

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    1. A lot of people are in your situation! It's a really big steo in life, just thinking about it makes me nervous!

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