If my best friend called me tomorrow and said, “I think I want to buy a house,” here’s what I’d tell her.
First, call me before you talk yourself out of it.
Don’t decide you can’t afford a home because you don’t have 20% down. Don’t assume your credit isn’t good enough. And please don’t spend three hours on an online mortgage calculator and convince yourself you already know what your payment will be.
There are so many ways to structure a mortgage, and you may have more options than you realize.
I’d tell you that the most important number isn’t necessarily the price of the house—it’s the payment you’re comfortable making every month. I don’t care what someone says you can afford. I care about what allows you to still live your life, take vacations, go out to dinner, and sleep at night. I’d also tell you not to get completely hung up on the interest rate.
Yes, the rate matters. But so does everything else. How much cash are you bringing to closing? Are there seller or lender incentives available? Would it make more sense to use those dollars toward closing costs, permanently lower your rate, or temporarily lower your payment? The best option on paper isn’t always the best option for you.
And if your credit has a few bumps and bruises? Tell me. I promise you’re not the first person who missed a payment, ran up a credit card, changed jobs, got divorced, had a medical bill, or just went through a season where life got expensive. Let’s look at it and figure out what we can do instead of assuming the answer is no.
I’d also tell my best friend this: you are allowed to ask questions. Lots of them.
You don’t need to know what escrow means. You don’t need to understand the difference between FHA and conventional financing. And you definitely don’t need to pretend you understand something because everyone else in the room seems to.
This is probably one of the biggest purchases you’ll ever make. You deserve to understand exactly what you’re signing and exactly where your money is going.
And finally, I’d tell you to choose your people carefully.
You want a real estate agent and a lender who communicate with each other, who answer their phones, who explain things without making you feel stupid, and who care more about putting you in the right home and mortgage than simply getting you to the closing table.
Buying a home can feel overwhelming. But with the right people beside you, it can also be really exciting.
If you were my best friend, I’d want you to feel educated, comfortable and confident when you get those keys.
And honestly, that’s how I want every person I work with to feel.
