My First Time Homeowner Experience

Becoming a homeowner can be a challenging journey but a challenge well worth it! Today I’m sharing more about my experience purchasing my first home and answering your questions.

A few weeks ago, I shared on Instagram that it had been two years since I purchased my home. Many of you said you wanted a blog post about my experience becoming a homeowner and asked questions. I’m here to give the people what they want and share more about my personal journey.

The first takeaway I have for you all is that everyone’s journey to homeownership will be different. Do not let my experience or anyone else’s dictate what yours will look like. I want this blog post to be helpful, insightful and give you an idea of what to expect. So let’s get into it!

I first got serious about being a homeowner in 2017. Two years prior, Madison and I moved out of my parents house and into our own space. I’d already had it in my mind that I wanted to rent for two years then buy my own place. I called up my childhood friend who’s a realtor to ask her some questions about the buying process. At the time, I wanted a condo but also had interest in buying a multi-unit as a live-in investment property. She explained to me the pros and cons of both, and first steps for the process.

I decided the best option for my starter home was the multi-unit property. It served as a first step into both ownership and investment. The idea of being a landlord and finding a tenant were a little scary but the pros outweighed the cons so I took a leap of faith!

Q & A

How did I go about finding tenants?

I have to say I was super lucky when it came to finding a tenant. Someone I know reached out to me on Facebook once they saw I owned a property. I did a background check, did a “tenant interview” and got a legal lease for both of us to sign. Prior to finding my tenant my realtor suggested avenues such as hiring a property management company and interviewing people who receive section 8. These are options I’d consider in the future whenever I have to find a new tenant.

Is it worth the extra work/stress

Yes it is! Becoming a homeowner was a very proud moment for me. It’s also a great investment for the future, as I can pass this property down to my daughter. Home maintenance is something that requires more discipline and thought than renting. However, those tasks can be outsourced if you’re not a do it yourself person. I haven’t had many issues with my house, a few hiccups here and there but nothing that’s made me regret my purchase.

How did I know I was ready to buy

I had a rough timeline in my head for how long I wanted to rent. When I called my realtor I was actually more prepared than I thought I was! I had already been maintaining pretty good credit and saved my bonuses and tax returns for a down payment. There were also things I wanted that an apartment couldn’t offer: a yard, garage, basement, additional storage space, etc.

What made me become a landlord vs. owning a single family home

It made the most sense for me financially. My dad had encouraged me to get an investment property from a young age so when I was ready to buy I had already considered it. After discussing the differences between a multi-family and single family home with my realtor, I made my choice. With my property, I was able to get more bang for my buck and my tenant helps pay my mortgage. I knew I could handle one tenant to start and eventually two when I do buy a single family home. My property helps me build equity and it will generate revenue when I move out and have two tenants.

Do I have to make a lot of repairs?

Nope! I specifically wanted a move-in ready home so all I had to do was add personal touches. My loan type required an inspection so the inspector pointed out anything that wasn’t up to code or would require repair. This is done before the purchase is finalized so I could ask the seller to make any necessary repairs if I wanted. I had a minor plumbing issue but my dad and his friend were able to fix that really quickly.

Did I do a down payment? What if you don’t have 20% to put down?

Let me tell you a secret: You do not have to put down 20% to own a home. It helps to have that much as it helps to lower your mortgage payments but that’s not the only option. I have an FHA loan which only requires you to put down 3.5%. Much more attainable and they’re available nationwide. I did find that not every lender offers FHA loans. You’ll have to do some research on lenders if this is something you want to take advantage of. The state of Illinois also offers a grant to first time homeowners for down payment assistance so I applied for that as well.

All in all, I was able to keep most of my money in the bank and only paid a small amount toward closing costs. I recommend anyone looking for their first home to research what programs are available where they live.

I hope I answered you all’s questions! Drop a comment if you have more! If you’re interested in buying a home or are kick starting your process I hope you found this post helpful! As always, do your own research and make sure you ask your realtor and lender any questions you may have. It’ll only help you in the long run!