owning a home

I bought a home about 2 years ago. In so far as the fees-honestly, once you get there, it all becomes a blur because it moves fast, laws vary by state/region, and sometimes the fees go by more than one name. But my advice is this:

If it’s possible to live low cost or free (roommates, living at home, renting a room, whatever) while saving for a house, do so. I know it’s not an option for everyone, but it helps tremendously with saving.

Put your home savings in a separate bank account, preferably one that can grow. (I was supposed to invest mine, but I never did which was dumb! I hear good things about high yield savings accounts.)

Take advantage of first time home buyer programs. Research the ones in your area.

Do not leave yourself with $10 in your bank account when you close. I swear it’s a right of passage that when you buy a home, something will immediately break. Make sure you still have some accessible savings (not your Roth IRA!)-the amount will vary but I wish I’d had $10k.

Good luck girl! Buying a house is the best thing I’ve ever done for me. The process is a huge emotional roller coaster but there’s so much peace in owning your own home.

Edit: if any of you ladies ever need help with anything home-buying related, feel free to message me anytime. I'm happy to help however I can.

You can do it. Sometimes your first home isn't your dream home but first step to security. Happy for you and no doubt you'll get there 🎉 🎉 🎉

Question for otoronga and all of you: Did any of you do this totally alone, without a husband, boyfriend, or family or friends? How did you get guidance and advice on the little things? Did you have trouble dealing with contractors/repairmen? Did you "invent" a fake husband or boyfriend, or wear a fake wedding ring? Did you find people tried to take advantage because they knew you were totally alone? What did you have to learn about to ensure you could fix it yourself in an emergency, or become very knowledgeable about to ensure that people wouldn't take advantage of you?

That's a great goal to have! I'm sticking to renting for the rest of my life since I don't have any family or anyone to help support me in buying and managing a home so it's easier to have all the maintenance taken care if by someone else. I also travel a lot so it's just more convenient to rent an apt. I also have moved a lot for work and being locked into a mortgage is a big hell no for me.

I'm sure it's quite different in different countries, but in Australia, I feel incredibly sorry for people under the age of 40 who are pretty much locked out of buying property because of how expensive it's become. It's very unfair, particularly for people in the big cities.

I was lucky to buy nearly a decade ago when properties were expensive, but not completely out of reach, and I was already in my late 30s when I did. If you have a steady and decent income, you should buy as early as possible, even if it means borrowing more. If possible, borrow from family for the deposit because (hopefully?) they won't charge you interest! Even a little bit helps to make the eventual bank loan a bit smaller. If you borrow from family/relatives make sure you have a repayment plan and explain it to them - they will appreciate this.

Once you get a loan, try to get the lowest rate possible. Once you get a really low one (negotiate with the bank and leave them if you find a better rate - don't ever feel obliged to stay with one bank), fix it. It amazes me how many people don't know to do this. You will save thousands and pay off your loan quicker.

Again, this is an Australian example, but I recommend reading Barefoot Investor (or the equivalent in your country) - this book will change your financial life, for the better. It's all about setting up saving and investing mechanisms in a way that a) they won't be too onerous, b) you can forget about them while they sit there making money for you.

Good luck!

I am in the same boat as you! I made a post a while ago asking for advice as well because I don't know anyone else my age who owns their own house (ESPECIALLY not with the help of a man). Thank you for summarizing the steps and best of luck to you!

I feel like it's such a coincidence I came on here to talk about this exact subject, and I see you made this post recently.

I bought a house with my ex-husband at the beginning of 2020. We were super young when we bought it, but it was possible because we had two incomes. I make more by myself now than we did combined back then, but the house prices have increased so much and the interest rates are so much higher that I can't afford as much as I would have been able to a few years ago.

When my ex and I got divorced last year, I was originally going to refinance the house in my name only, but decided that I didn't feel safe living on my own in that house because his behavior was getting scary and that the prices increased so much, that I wanted to make a profit from the house.

Now I've been living with my parents for over a year, and it's been almost a year since we sold the house. I've been fine living with them (with my cats), but lately it's been stressful and so I think I'm going to fast-track the process. I've been allowing it to be slow because I had a little bit of debt to pay off, I've been spending money on hobbies and I wanted to get ahead on saving for retirement. I think I'm at the point where living at home is getting bad for my mental health, so I'm going to cut back on retirement savings (i'm maxing it out rn) and really get budget conscious. Hopefully I'll be out of here in a few months.

Good luck OP!

I own my own home. It was a lot of work to get here but 100% worth it.

I became a solo homeowner last year after years of dreaming about it. When I first graduated from school with mountains of debt, I did not think home ownership would be in reach. But by being financial responsible over the years, I made it happen.

Prioritize saving as much as you can. I was really into the idea of financial independence, so I worked up to automatically saving a quarter to third of my income every year. Every time I got a raise I rolled the increase into savings rather than adjusting my lifestyle upwards.

I did not take advantage of a government-backed mortgages, but if you do you can pay a much lower down payment, which makes the amount you need to save much less overwhelming. However, this can also affect the buying process. When I purchased, there were bidding wars over every house, and not having to go through the extra hoops and delays associated with an FHA loan gave me a slight advantage over competitors.

It is definitely good to educate yourself about the process, but don't feel like you have to know it all. The realtors and mortgage companies are well-versed and will be able to provide a lot of guidance, so focus on finding a team that you trust. I had an excellent realtor, and through her I was referred to an excellent mortgage company and excellent contractor. Finding a great realtor is like dating; there are a lot of scroty people who may try to talk you out of your standards. But when you find high-value people, the process is amazingly easy. Make sure you know exactly what you want and look for a realtor who respects that.

That being said, be reasonable! Don't buy more house than you need just because you might qualify for a higher mortgage, and don't feel like you have to find a perfect house. Instead of paying $200,000 for a brand new house in perfect condition, you could buy a $150,000 slight fixer upper and spend $20,000 to fix it up to your standards. You will still have your dream house and spend less on it. It makes more financial sense in the long run to pay out of pocket for renovations than to pay interest on perfection for 30 years.

Another option is to househack, renting out a portion of your home to help cover the mortgage payments.

It's not for everyone, but I changed locations in order to buy a home. I knew I would never afford anything in New York City, and I did not want to spend $300,000 plus on a house. I made a strategic decision to relocate where housing prices and property taxes are lower.

Get yourself a book like "The Complete Book of Home Inspection" so you feel empowered when you are viewing houses and know what repair issues are minor and what are dealbreakers. Similarly, a book like "The Big Book of Home How To" can help you get comfortable with maintaining the home. Even if you decide to outsource the labor, you will have a better understanding of home maintenance and will be more confident negotiating with contractors.

Good luck!

I just bought a house 2 months ago, totally alone in another country, far away from everyone.

It was a huge mental challenge. I’m still not sure if it was the best decision but I can always sell it.

You don’t need support. If you feel like doing it and you are quite sure you will be staying in a place for some time, it’s a good thing to do.