Bought my first house at 23 and sold it at 28! Here’s what I’m going to do differently for house #2!
I loved my first home and made some bomb memories in it! But I ended up getting a job that had me away from home 5 nights a week and at that time my mom had been asking me to move back home about once a week since I left (lol she missed me) so I took her up on her offer being that I would only be there on the weekends! I jumped at the offer to save on mortgage and bills as well as use the money I made on the sale of my home to pay off all my debt except student loans! This was totally a win win for me since I had been missing Florida anyways and looking back I am so glad I made the move! I miss that house soooo much though but it taught me so many lessons that I’ll take with me when I start looking for my second home at the end of the year if I have a job traveling 50% of the time instead of the current 100% weekly travel I am currently doing! Why buy another house if I’m never going to be there, right?!! I’ve incorporated some of Dave Ramsey’s practices along with my own to come up with these steps to purchasing my next home!
1. Pay off all debt except student loans!
I can’t live with my mom forever and they way these student loans are set up it’ll be a good amount of years before they are gone gone!
2. 3-6 months of expenses in emergency fund
I am aiming for 6 months just to be on the safe side! The emergency fund will secure me for unforeseen expenses that I wasn’t prepared for last time.(Like having to re-pipe my whole house and spending 7k to do so rolls eyes hard lol )
3. 10%-20% down payment and funds for moving costs and furniture
Dave suggests a 20% down payment to lower payments and avoid paying PMI (Private Mortgage Insurance) that is incorporated in your monthly mortgage payment. If 20% isn’t doable for you he suggests a down payment no less than 10%! I haven’t fully decided which amount I am going to aim for just yet.
4. Only get a 15-year fixed conventional mortgage
Interest won’t kill you like a 30-year mortgage and your home will be paid off quicker. With the purchase of my first home, I opted for a 30-year FHA Loan, but the interest and hidden fees killed me tremendously felt like my balance wasn’t budging at all! Although FHA loans are ideal for first time home buyers meaning they are easier to obtain, they aren’t necessarily the most financially savvy option in the long run, but you can always refinance to a 15-year conventional loan if you choose this route.
With these steps, I will go into my second home experience much more prepared and financially secure! I am soooo excited to begin the process the end of this year /beginning of next!
Leave a comment with any questions you may have, loves!
With Love,
Jasmine Kaye