She Strengthens

From Renting to Owning: My Journey to Becoming a Homeowner at 23

I never thought I’d be a homeowner at 23, but life had other plans. After a roommate situation went sour, I found myself scrambling to find a new place to live. I ended up moving into a studio apartment in my building, which came with a hefty price tag of $1,052 per month, including parking. To make matters worse, I had just financed a used car, adding to my financial burden.

Taking Control of My Finances

Despite the odds, I knew I had to take control of my finances if I wanted to achieve my goal of becoming a homeowner. I started by examining my income and expenses. At the time, I was making $51,000 per year from my full-time job, plus some extra cash from a part-time gig. However, my expenses were still too high, thanks to my car loan and student loan payments. I knew I needed to reduce my rent to around $1,200 per month, which was ambitious, but achievable.

Understanding the Market

Next, I began researching the local real estate market to understand what homes were selling for. My friend Lexie, who was also looking to buy a home, and I started attending open houses together. We were both 22 at the time, and we soon realized that our youth was actually an advantage, as we qualified for the $8,000 first-time homebuyer’s tax incentive.

Finding the Right Realtor

I knew I needed a reliable realtor to guide me through the process. That’s when I met Vincent, who came highly recommended by Lexie. Vincent was instrumental in helping me navigate the complex world of mortgages, credit scores, and home warranties. He explained the different rates and options available to me, and even connected me with a financing company.

Securing Financing

Although I didn’t get pre-approved for a home loan, Vincent helped me secure financing through his relationship with a financing company. My credit score wasn’t perfect, which meant I had to settle for a higher interest rate of around 5%. Looking back, I wish I had taken the time to improve my credit score before applying for a mortgage.

Making an Offer

After months of searching, I finally found a property I loved – a two-bedroom, two-and-a-half-bath townhouse with a fireplace and new paint and carpet. I put in a bid for the asking price of $169,000, but unfortunately, there were higher bids on the table. I didn’t want to overpay, so I kept looking. That’s when I stumbled upon a fixer-upper that was cheaper, bigger, and brighter, with a finished basement and a prime location. I envisioned the possibilities and put in a bid, which was eventually accepted.

Closing the Deal

The closing process was stressful, to say the least. The date kept changing, and I had to finalize everything with the insurance company. I also had to keep a strict budget until the process was over. But finally, after weeks of waiting, I received the keys to my new home.

Owning It

It took me three months to move into my new home, as I had to make some repairs and renovations. I took out a loan to fix up the place, which included replacing windows, patching holes, and installing new flooring. It was a lot of work, but I was determined to make it my own. I also got a long-term renter to help cover some of the mortgage costs.

Lessons Learned

Looking back, I realize that buying a home at a young age requires careful planning, research, and perseverance. It’s essential to be in strong financial standing, even before you start looking. Don’t be afraid to ask questions, and don’t take everything at face value. And most importantly, remember that there will always be other dream properties out there, so don’t get too attached to one particular property.