1. Live on One Income
Money wise this is the best suggestion I can offer. During our first year of marriage, Daniel and I lived entirely off of his income. Anything I made teaching was direct deposited into our savings account. Doing this was difficult when we wanted to buy luxury items, but ultimately we knew it was worth it. Every month seeing our savings go up meant that we could offer a larger down payment. While your friends are shopping for new clothes or eating out every night you are investing in your future! If you can't make it on one income, then talk to you spouse about what you can do! Maybe it's just $500 a month, anything will add up.
2. Realistic Expectations
If you plan on your first home being 3000 square feet on an acre lot then I hope you are earning six figures, or live in the middle of nowhere! The last house I had lived in was my parents so my expectations were unrealistically high. I also love fixer upper, so we threw around ideas of completely renovating a house together. Luckily we realized we both work full time jobs meaning we have zero time to complete a huge reno project even though HGTV makes it look so easy! Talk to your spouse about your absolute requirements in a home. What can you not live without? What is probably more of a luxury than a necessity? If your list includes a barn door, or specific landscaping then you probably aren't being realistic for your first home.
3. Talk to a Lender
We had no idea what was expected from us until we started asking questions. We got pre-approved for a mortgage, and he was able to tell us all the costs associated with buying a house. There are a lot of unexpected closing costs. I thought the majority went to the down payment, but honestly a lot of it has to do with paying taxes and insurance up front. You may be surprised how small of a downpayment is required these days. As little at 3-5% is accepted depending on the circumstances!
4. Consider New Construction
When we were house hunting, the market was fierce! We wanted to live in a suburban area near Fort Worth and Roanoke, and the houses there were selling very quickly. We put an offer in on one, and it ended up going for $20,000 over asking! That was way too competitive for our young blood. Our realtor suggested new construction. No bidding wars. No dealing with sellers. We got to pick our lot, floor plan, and finishes. New construction brought us a tad over budget, but it was completely move in ready.
It's completely possible to buy your first home in your early twenties. So many twenty-somethings choose to live in luxury apartments that cost nearly the same as a mortgage would. Don't throw that money out the window every month when you could be investing in a home for your family. Start saving now, and before you know it you'll be packing up and moving out of that apartment.
xoxo,
kelsey
