Buying a Home for the First Time

Looking into buying a house? Are you tired of paying rent, better yet having neighbors that are on top of you? Then hopefully my journey on Buying a Home for the First Time helps. I literally walk you through my entire process, and although it was a bumpy ride it was well worth it! I hope you enjoy. 😊

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The Thought Process

November 13, 2017 at the ripe age of 30 I closed on my very FIRST house!! Some call me an overachiever, I called myself a GOAL Crusher! After paying rent on a one bedroom apartment in the ever growing city of Charlotte, NC, I had to have a real conversation with myself, and I only had two questions.

1. How much longer are you willing to pay mortgage on this one bedroom apartment that you will NEVER own?
2. What are you scared of?

I answered #1 quickly with a “I don’t know” and #2 well that question was a little bit more complex. When you’re single making ends meet on your own there is a lot that could go wrong with owning your own house. This is when a lot of “what if’s” popped into your head.

Staying in an apartment had ONE major advantage for me, and that was the MAINTENANCE MAN! Can I get a Amen!?! 🙌 having someone to take care of things was absolute love, but that’s all the love I could give to the aspect of living in an apartment complex.

If you want to call a Spade a Spade

Apartment living or Renting a house REALLY does have major advantages. Let’s name a few shall we?

• Maintenance Man (Of Course 😏)
• On site pool, fitness center, club house
• Updated Appliances (Depending on where you chose to live)
• Alarm Systems Ready to go
• Washer and Dryer Included (If staying in a apartment)
• Close to Stores and Restaurants (Depending on the location you choose)
• Pet Park
• Playground
• Easy and Convenient
• Already Built-in Community

Now let’s look at the disadvantages shall we?

• Limited Parking for you and your guest
• Rent goes up every year due to “city inflation” (Or so they use to tell me)
• You are forever connected to someone either across from you or below you etc.
• There is no way you will ever own it (I mean NEVER EVER)
• Eventually you grow out of it,and will need a bigger place with more room.
• You will always have to walk or drive a mile to take your trash out.
• Noise restrictions
• No storage space
• New rules every year
• You never know who your neighbors will be from month to month

Ok, ok I think you get my point. You will always have advantages and disadvantages to moving on and trying something new. Which brings me to my next point.

What are you Scared of?

Hmmm let me count the ways starting this home buying process could go sooo unbelievably wrong 😂 Just like anything you never know unless you try. What is THE first thing that pops into your head when you think about buying a new home? Out of a million different things, that ONE thing that comes to my mind is…..CREDIT. Is there anything else in the beginning stages of this process that could scare you more than your own credit score? 😂

Looking at your score is seriously comparable to ripping a Band-Aid off. The quicker you do it, the less pain you feel. Think of it this way, would you rather NOT take a chance of home ownership and end up paying someone else’s mortgage off or better yet funding another complex? Because I promise you, I definitely assisted in funding some of these new apartment complexes here in Charlotte.

There is absolutely no way you can hit the ground running without knowing where you stand when it comes to your credit score. Everyone knows you have to have a more than decent credit score in order to even THINK about owning your own home. By descent I do mean at least 635 in order to qualify for a FHA loan.

What is a FHA Loan?

FHA stands for Federal Housing Administration. What they do? The FHA sets standards for construction and underwriting and insures loans made by banks and other private lenders for home building.

The Progression

When I first decided to start getting my life together my credit score was terrible! I mean terrible people! Like low 500’s terrible. This was back in 2016. So let’s just say my mission started well before actually making buying a house a top priority. If you haven’t already, and you are legit thinking about going into the home buying process please download Credit Karma!

Get Your Credit Report

You are allowed to get your credit report once a year which will NOT impact your credit score and it will go down line by line of everything you had or have in your name going back at least 7-10 years. You will see all your old addresses of places you use to live. Credit cards, and even previous names that you have used. Definitely get a copy of your credit history now. It’s Free and it will help your credit score out in a major way!

If you find any discrepancies that negatively impact your score you can start the process of getting it removed. It may take a while for them to remove them off your credit so the sooner you find out the errors and report them the better. I got my credit report from Credit Karma. If you would like to check your credit report you can Check Here.

Granted these scores will be off from what your Lender will pull. (Lender is the person who qualifies you for your loan. Let’s you know the amount you can start with and the amount you don’t want to exceed.) You never want to be “House poor” (Buying more house then you can actually afford) but that’s another story.

The Journey

If starting this journey is for you, you NEED to know where you stand. Like I said in my bio, I have “champagne taste on a beer budget.” Which means I want the BEST of the best but I don’t want to spend a lot of money. (I know….typical right??? 🤷🏾‍♀️) Well hey a girl can dream! After working extremely hard on my credit score I was able to get it up to the low 600’s by the end of 2016, and by low I mean 620.

I legit raised my score over 100 points just by taking off the negative things on my credit report. Legit, I had crazy things on their like three different names I’ve NEVER had but were similar to mine. I even had my mom’s information on my credit report because are names are almost the same. It also had a few properties I NEVER lived at, one of which showed that I was currently paying $719 a month for rent in Durham, NC where I resided for college over EIGHT years ago. (Shout Out to North Carolina Central University! #EaglePride🦅)

I thought to myself, Nope, that was NOT me so it has to go! Even if it shows up as green on your credit report,  meaning in good standing, you still want to remove these items off of your credit report, because at any time these people could stop paying and then your credit is hurt by it. So after getting my score where I felt it was “ok” I decided at this point it was now or never!

Lender

Now was the time to actually see where I stood in this whole house buying process by getting a lender. This is where things start to get REAL. I got with a friend in the real estate industry and gave surface level information to the Lender. By surface I mean (Full government name, full social security number, phone number, current address) When you start to get down to the nitty gritty you will need 7 documents. Read this article for more information on that.

The Lender will give you a REALISTIC idea of where you stand and what you can and cannot afford. This eye opener may or may not be what you WANT to hear….but defiantly what you NEED to hear. Once you see or hear that number, rather it’s $150,000 or $350,000 you know where you stand and what your champagne or beer budget will be.

If you’re lucky enough to live in Charlotte then you know that $150,000 in today’s market will get you nowhere fast. Unless your budget is starting at $200k your sights will need to be set elsewhere if you are wanting a new construction home.

New Construction vs. Renovating

I’m going to let you in on some of the reasons why I decided to go with a New Construction. The easiest way to break it down is to list it out baby!

Now let’s look at the reason why buying a home that I could renovate myself was also an option.

I’m a visual learner and if you are looking at those documents like I am you can clearly see why I’m going NEW BUILT over everything. Granted you and me could be in two totally different situations, just make sure you make the right decision for you and your household.

Next Steps

Ok, so I have clearly decided that the only way for me to start this new journey is to build from the ground up. So now we move onto Location, location, location! Location is EVERYTHING when choosing a house and like a lot of my coworkers, family, and friends told me, “Never buy a house in a location based on the job you have now because that could change.” I promise you these are words to live by when deciding which area is best for you.

Now I am very much a city girl, I love being around shops and knowing I’m only a few minutes away from a mall. That to me, gives me peace of mind. (Don’t judge me). But with that being said I knew I wanted a city life vibe, what I got was very much the suburbs which is COMPLETELY opposite of what I wanted. (City life in my dreams 🙄)

So after you get your pre-approval from your lender and you see how much money you can actually work with your dreams and aspirations start to become REALity, and let’s just say a sista can’t afford Mecklenburg County taxes!

Things to Remember

If you have a family you might want to also review the school districts in the areas you are thinking about moving to. I mean the kids are our future, so you want to set them up to be the most successful. Review all school districts before signing on that dotted line.

Also check for HOA fees! HOA stands for Home Owner’s Association. They basically charge you a fee either monthly, quarterly, or annually just depends on the neighborhood. You want to make sure this is added into your budget because those fees can be very costly depending on the amenities that it has for the neighborhood. (And by amenities I’m talking about playgrounds, basketball courts, club house, pool etc.)

The One

Off to another city we go! I settled in Concord, NC which is definitely up and coming with shops and housing etc. But PLEASE believe me when I first saw my community I literally wanted to DIE! I was in the middle of nowhere, I literally drove what felt like FOREVER before I found this new gem I would call my home. When I went to the open house and walked around the show model I got butterflies in my stomach.

Keep in mind at this point I had seen a few houses AND townhomes in Charlotte and although I was Impressed by some I wasn’t vibing with the area or the actual show models. I am not an impulse buyer when it comes to a HUGE purchase and I always want the opinion of the people closest to me (ie, Mom, uncle, best friends) I legit needed lots of opinions when making up my mind, because I never want to rush anything this life changing.

When you start looking for a house always make a list of all the things you liked and disliked about each one. You have to have a list of MUST-HAVES, things you can’t live without in your home. Also have a list of things you can compromise on. There will be very few houses that will have absolutely everything on your list so you want to keep in mind the things that you can live without and things you are willing to compromise on.

Making a List

Like for me, I HAD to have a open floor plan. If the kitchen and living room was not open you might as well miss me with that showings because I was not here for it. I also HAD to have a nice big master. I wanted enough room in my bedroom to put a chair or ottoman if I wanted to. Where I allow some compromise was the kitchen, I REALLY wanted a island but I didn’t have to have one. Also I wanted a separate shower and tub in the master bathroom, but I was willing to compromise there as well. But my house had to have a garage. Just to give you a few examples.

So after looking at the show model in Concord I decided to have my realtor show me a few more options, and he did, but I was stuck! I was stuck on that house in Concord, every time he would show me the living room in one house I would revert back to the living room Concord.

I would sit a home in my stuffy apartment and just plan the things I would buy to make that house a home. That’s when I knew, I knew that I really wanted to take the next steps with building my HOME. I talked about the house all the time to my friends and family members to the point everyone wanted to come and see the model for themselves.

Doubt Crusher

Remember earlier when I was talking to you about being scared? Well after I knew what house I wanted, a swarm of doubt came over me when I sat down with the sales and Marketing Rep for Ryan Homes. Of course you’re asking “but why?” Well let’s just say my pre-approval amount compared to the bells and whistles I wanted in this house, did not add up. I NEVER liked math and you start to REALLY hate it when it comes down to your finances.

My girl Leslie gave it to me straight and I absolutely love her for that. I’m sure by now you can catch my vibes, and you can tell I’m a realist. I straight up told her there is NO WAY I can afford to live in the house that I picked with all the trimmings I wanted. So naturally she tried to make me downsize to a more economical size. Nope, not my style.

I told her that if I couldn’t get what I wanted then that means I just need to wait. (My heart was literally broken and my ambition crushed! After all that hard work of getting my credit score up, my search ended with the initials (DTI – Debt to Income).

Debt to Income

The debt-to-income (DTI) ratio is a personal finance measure that compares an individual’s monthly debt payment to his or her monthly gross income. Your gross income is your pay before taxes and other deductions are taken out. The debt-to-income ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments.

The DTI is one of the metrics that lenders, including mortgage lenders, use to measure an individual’s ability to manage monthly payments and repay debts.

I am one of those people who really can’t hide facial expressions that well and Leslie could probably tell that my heart was crushed. I tell everyone to this day, she is the SOLE reason I am a proud homeowner. Let me tell you why!

Motivation

When I told her that I was not lowering my standards and I was perfectly fine with working on my DTI until it was good enough for home ownership, she looked at me and said: “Velma if you want this house we will work it out!”

Now I looked at her like “Yeah, ok” she’s a sales person it’s her job to say that to me when I’m at my lowest point. (You know that point where you don’t feel good enough?”) So being the person I am, I said back to her “Leslie you just told me my DTI sucks and is holding me back from being able to get this house, that’s not going to change overnight.”

Leslie literally broke down exactly what I needed to do to get my DTI in a good place by time I needed to have my final approval. (Now my financial situation will be different from yours, so look at where you are and make sure you are really comfortable with moving forward.)

When I tell you that this woman is heaven sent! Ladies and gentlemen she is literally an angle. Not only did I leave there feeling motivated I was also rejuvenated. She was not playing when she said that “we” would work it out. She stayed with me throughout the ENTIRE process. I’m talking check-ins making sure everyone was responding to all my questions, I mean this girl was on it!

Nothing but the Truth

I say all this to say I did not have a great credit score, I did not have the money sitting in the bank waiting for me to make this big purchase. But what I did have was a lot of debt and a paycheck that could only pay the bills I had now and absolutely no extra, and you know what, I DID IT. 💃🏾💃🏾

Not only did I do it, I did it by MYSELF! I didn’t need a husband to do it, I didn’t need to be rich, and I definitely didn’t need a miracle to do it. All I needed was God, positivity, and motivation.

Moral of this Story…

If you REALLY want something TRUST me it won’t be easy. If it was we would all have houses. Seriously listen to me when I say this journey is soooo worth it! I would NEVER trade my home buying experiences for anything. It made me who I am today. A home owner and a BOSS! And you can do it too! It’s scary and hella hard but YOU CAN DO IT. First step is trying. CHECK your credit score today! That’s half the battle right there.

You Can Do This!

Ok, now let’s run through how we got to this point real quick.

1. Got totally FED up with paying mortgage on a One Bedroom Apartment!
2. World was completely turned upside down with the thought of checking my Credit Score.
3. Put on my Big Girl panties, rip the Band-Aid off and tackled my Credit Score like a BOSS.
4. Getting the REAL deal on what I can afford from my Lender
5. The FUN part, looking for the house of your dreams 🏡
6. Shaking off the doubt and putting down your “lock in” money for your lot.
7. Being Patient and watch your empire grow. (When I say be patient that means going by your lot every other day and checking on the progress 😂)
8. Moving in
9. Toasting to your new Achievements & over coming your fears 🥂
10. Living Happily Ever After

Now tell me how do you feel? Are you pumped and motivated or are you still scared?? It’s total fine if you are, we’re human and I get it! No one likes rejection, but like I said before, YOU GOT THIS! Boss Up!

Join My Tribe!

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Thank you so all the love and support! I hope this was helpful, please leave a comment and share your thoughts or experiences. It could really help someone one day.