Buying a home is overrated.
It’s a big commitment, it’s not a guaranteed good investment, and it’s a shitload of work. (I’ve been a homeowner for less than a year and I already have a growing list of things to do and contractors to call…it sucks). Do yourself a favor, and spend at least the first half of your twenties renting.
With that said, I know that if you’re reading this, you’re going to buy a house anyway. That’s fine; I did too. Sometimes you can’t avoid it, and sometimes you just really want a house. So here I’ve put together a first time home buying guide to wrap up our best advice over the last few years in once place. Enjoy!
Preparing to Buy a Home
Don’t buy a home just because everybody’s doing it (they’re not) or because your Uncle Joe told you that it’s stupid to “throw money away” on rent (he’s wrong, too). Don’t buy a home because it’s a buyer’s market (which it is) or just because mortgage rates are so good (they are). Buy a home because you want to be a homeowner. Buy a home because you’re settling down. And only buy a home if you’re financially ready.
- How to Prepare to Buy Your First Home
- Are You Really Ready? 5 Reasons Not to Buy a Home
- How Much House Can You Afford?
- Understanding the Tax Benefits of Home Ownership
- Why You Should Create a New Home Expense Fund
- What You Need to Get Approved for a Mortgage
- First Time Home Buyer’s Mortgage Checklist
Paying for Your First Home
For most of us, our home is the most expensive thing we’ll ever buy. And for most of us, we need one big loan to do it. It’s called a mortgage, and as all the recent foreclosures should tell us, it’s not something to take lightly. To pay for our first home, we’ll need good credit, a steady job, and a sizable chunk of cash for a down payment. Navigating the waters of home financing isn’t always easy, but these articles can help guide you.
- Your First Mortgage: How to Apply and Get Approved
- Types of Home Loans
- Mortgage Rates Explained
- What Percentage of Your Income can You Afford for Mortgage Payments?
- How to Find the Best Mortgage
- An Intro to FHA Loans
- How to Qualify for an FHA Loan
- Buying a Home When His Credit’s Good, But Hers is Bad…
- Your Down Payment: Sources of Cash to Buy Your First Home
- How to Shop for a Mortgage: 7 Steps to Finding the Perfect Home Loan
- Pre-Approval vs Pre-Qualification
Mortgage Resources
Shopping for Your First Home
In a perfect world, you would commit to buying a home and get mortgage pre-approval before stepping foot into your first open house. Obviously, it may be you didn’t realize you wanted to own a home until you see your dream home. Either way, shopping for a home can be a long and taxing experience.
- 10 Tips for Hassle-Free House Hunting
- How to Find a Good Realtor
- Why to Get Mortgage Pre-Qualification Before House Shopping
- Online Home Searches: Convenient, But Not Always Accurate
- House-Hunting Secrets: Three Ways to Make the Most of Open Houses
- What Buyers Need to Know About Short Sales
- Should You Buy a Foreclosure?
Shopping Resources
Sealing the Deal
- The Secrets to Winning a Bidding War
- What Buyer’s Need to Know About Earnest Money
- The High Cost(s) of Buying a Home
- What Happens at a Closing?
And, that’s a wrap! Our first time home buying guide. Hope it’s useful. Do let us know what you think and if there are any topics you’d like to see us cover in the future! Happy home buying!
I'm David Weliver. At 26, I had NO savings and NO financial plan. I was maxed out, stressed out, and fed up. Then, I changed. I repaid $80k of debt, tripled my income, and bought a home. I'll show you how to get similar results. 
wow, wish I had time to read through all those articles, you have amassed quite the collection!
good stuff.
Great list of resources with some very valid points. Owning your own home is great, but it isn’t necessasarily the best way forward for creating wealth. All you ever hear from people is to buy a house so you aren’t wasting money, but it’s worth looking at your options and also taking a moment to review the advice – is it coming from someone with the credentials to back it up?
I’ve been working for 3 years making 65k/yr, and my dream has always been to buy a house for myself. I managed to save 80k in savings and stocks, and I’m very eager to jump into the housing market as soon as possible. Would it be wise for me to purchase a cheap (affordable) property in a below average neighborhood somewhere in the SF bay area next year? Any advise would be greatly appreciated!
Ken, that’s awesome you’ve been able to save so much in three years. I’m impressed! Man, from everything I hear the SF area is rough. I’m used to Boston real estate prices but the Bay Area puts even those to shame.
I guess my answer to your question would depend on your goals. Do you want to own because you really want to own where you live? Or are you interested in the real estate as an investment?
For me personally, location matters a lot, so I probably wouldn’t buy if it wasn’t a neighborhood I loved.
If you were purely interested in it as an investment, you might even consider becoming a landlord and renting a place for yourself somewhere nicer. That might sound backwards, but you could take advantage of the low prices and mortgage rates without having to sacrifice where you live…
Agree,
That no body should ever be forced into buying their own property.
However, we do need to extol the virtues of home ownership because in my opinion, most people who get on the housing ladder never look back.
Many 1st time buyers however are put of because they don’ the process scares them or they feel they don’t have enough of a deposit.