As I shared in one of my previous blog post, one of the major things that took place in November of last year for my hubs and I was that we purchased our first home! What a process! I wanted to be sure to give you a brief rundown of how that process went for us and provide some do’s and don’ts to help the next couple (or person) looking to buy a home! Keep reading…
We decided in May of 2019 that we wanted to end the renting fiasco and start building some equity in a home of our own. No, I am not saying that you shouldn’t rent but we were just over it! We weren’t looking to put down a down payment and we definitely didn’t see a new build in our future, but we knew we required a 3 bed/2 bath. I instantly began researching programs that a married couple could qualify for. NACA seemed like a great opportunity, so we jumped on it! To make this horrible experience a quick story, the customer service just wasn’t there and they continuously let your documents and credit report expire which is more work for us as the customer! After seeing almost 30 plus homes and putting in more than 6 offers, we were at our wits end.
After a year of going back and forth with NACA, in July 2020, we decided to end our time with them! Lost earnest money. It was such a semi-depressing moment for me. However, Jay never lost faith and, really, that’s what carried me through. Now, I know you’re thinking, “but don’t you work in mortgage?” Yes! I do! That was my “duh” moment. Why hadn’t I gone this route from the beginning? Safe to say, we were able to secure our financing with no down payment, no PMI (private mortgage insurance), and literally brought less than $2000 to the closing table! MY GOD!
Our realtor found a new community and showed us the area and the model home! We loved it. We picked our lot, signed our contract and just like that, we were under contract for our new home! It was seamless working with McGuinn Homes (in case you’re looking) so we knew this was only a GOD moment.
Fast forward from July to November; its closing day! Our closing took less than an hour! It just all happened so fast and so perfectly! Our U-Haul was unloaded in less than an hour and just like that, we were in our home also known as #SPEARMANOR 🏡
That was a lot, but I wanted you guys to know pretty much every detail of our personal experience. Now, here are my do’s and don’ts when home buying!
- SAVE! SAVE! SAVE! I would recommend having at least $10,000 collectively for a couple & $5,000 if you’re unmarried; this prepares you for unexpected fees or inspections that may come up during the process and possibly your closing cost. Also, starting with a savings stash helps with furniture, appliances, decor, landscaping, etc.
- Try to get your revolving debts down. Revolving debts are your credits cards, including store cards. Get them as close to $0.00 as you can, meanwhile attempting to lower your installment debts such as auto loans.
- Get a realtor. This is not a purchase that you want to tackle on your own. Look for someone that you connect with and also someone that is listening to what you want in a home with whatever financial goals you have or are working towards.
- Look forward to jumping into the home buying process with no money saved! No one will take you seriously. You cannot get a preapproval which is required to shift into step two of the process. Save for a year or maybe even two and then begin to work towards the steps it takes to purchase. Easier said than done, I know, but just like a workout, you never regret SAVING COINS!
- Rack up more debt! No more credit cards. No, you don’t need those clothes or that purse! Only use the credit cards for emergencies and that is only if you can help it!
- Buy more house than you can afford. There is such a thing as being “house poor!” You have this enormous mortgage payment and that is all that you can pay for. So now you have to sit at home and not really enjoy life because you can’t afford it!
Whew! That was a lot, huh? But it was full of personal experience and factual information for those looking to go through the homebuying process. I hope you enjoyed this. Chat with you next time!