Imagine paying 3.5% down payment, using a mortgage to purchase a home but getting a 100% of the property to enjoy and all the benefits that comes with it. That is called leveraging your money and
My Journey To Home Ownership
Dated: December 13 2019
When I first started my journey to home ownership, I realized quickly that it was going to take work on my part after sitting down with a real estate agent and going over the numbers. I was shocked to hear the average sales prices of homes in the area that I was looking in and that I would need 6-7% of the sale price to cover my down payment and closing costs. I was told about Home Buyer Programs that were available to help cover some of my cost, but I appreciated the agent’s honesty in letting me know the requirements of these programs, the fees and the higher interest rate. This allowed me another option and the ability to make an informed decision. My monthly mortgage payment was going to be about $400 more than I was paying in rent, which would stretch my budget, but I was prepared to do what it took to get into my home. The benefits of raising my son in a home and having his own yard to play in outweighed everything else.
The first thing I did was sat down and revised my monthly budget, plugged in my monthly mortgage amount as if I was already paying it. I eliminated the things that weren’t necessary such as eating out daily, bi-weekly hair appointments, and nights out with friends, which those things easily added up to over $300 not including the outfits I purchased just to look cute. (I was in my Early 20s, so nights out and cute outfits seemed important at the time) So right there, I had already made up the difference I needed for my mortgage payment.
The next item on my list was to get the funds together for my down payment and closing costs. I started working extra hours at work, whenever possible, and saved all my tax refund. But I wasn’t done just yet, as I didn’t want to move into my new home completely wiping out my savings and I would still need to furnish it. So, I borrowed against my 401K account to get me the additional funds needed. It took me a little over a year to get ready, being a single mom at the time and the only income source. I wasn’t getting any child support to help. But I was finally able to do what I set out to do and that was purchase my home.
I didn’t just purchase any home, I built my home picking out everything from the lot, the floor plan and a few upgrades. I paid a little more and went outside the original neighborhood I was looking in, but it was the best decision I ever made. Today, I’m still in my home and have over a $100K worth of equity due to appreciation and paying down my mortgage. My family has grown since then and I’m now ready to move up to a larger more suitable home and I have more than enough equity to do so and still have money to save.
I’m sharing my journey hoping to inspire others to keep pushing toward their dreams and goals. If home ownership is one of those goals, let’s chat. I’ll be more than happy to help you and take that journey with you.
I purchased my first home as a single mother in my early 20's, so I know the fears, the anxiety and the financial responsibility that comes with such a large purchase. But I also know the pride, joy a....