Buzz
Welcome to the “How I Bought My First Home” series on Mytour, where I sit down with real people to learn how they navigated the process of buying their first home. This week, I spoke with Mark* (a content marketer) about how he and his wife (a government contractor) successfully managed the home-buying journey for the first time. Let’s dive into their experience and see how you can follow their lead.
Let’s start by getting to know our homebuyers.
Here’s what you need to know about Mark and his wife:
Age: 38 years old (at the time)
Location: Charleston, South Carolina
Marital Status: Married
Combined household income: SEO/content marketer and government contractor, totaling $220K
Next, let’s break down the costs involved in purchasing a home
Mark provides a detailed breakdown of the expenses associated with his first home:
Price of the home: $545,000
Down payment: $70,000
Closing fees: $19,000
Moving costs: Approximately $4,000 (with assistance from in-laws)
Monthly mortgage: $3,400
Insurance and taxes: $500 per month
Loan details: 30-year fixed mortgage at a rate of 5.75%. Lucky to lock in when interest rates dropped early last year.
Now, let’s dive into my Q&A with Mark about the process of securing his first home in today’s market.
How did you go about setting a budget and determining what home price was affordable for you?
We focused on the monthly payment we could comfortably manage without drastically altering our way of life, and worked backwards from that. While this probably isn’t the ideal method, mainly because online calculators often fail to account for things like taxes and insurance, it felt like a more realistic approach than trying to convince ourselves we could suddenly adopt a lavish spending lifestyle to stretch our budget.
What do first-time homebuyers need to know about mortgages?
Choosing your mortgage officer is arguably more crucial than selecting your realtor. The process of mortgage origination is far more intricate (and much less enjoyable) than house hunting, so it’s essential to have someone who is knowledgeable and can explain things in a way that makes sense. The best ones will be available at all hours to answer questions (though you shouldn’t make a habit of calling them at night), and will be honest about your financial situation.
How much of your income goes toward your mortgage?
Approximately 19% of our gross income. If I had to estimate, I’d say around 30-35% of our net income.
What surprise expenses came up?
While taxes and insurance shouldn’t really be considered "unexpected," they can quickly increase your monthly payment. And though we were fortunate that both our realtor and mortgage officer were outstanding, it’s important to know that you have every right to walk away if you’re not satisfied with the way they treat you.
What would you have done differently?
There were a few moments during the chaotic 2021-22 period when we could’ve ended up with a much better or equally good house in a better location if we had just offered a little more. Sure, sticking to your budget has its benefits, but the market doesn’t care what you think a house should cost. If you find one you really want and can truly afford, go ahead and make the purchase.
What advice would you offer to other first-time homebuyers?
It’s challenging because the current market is completely different from what we experienced a few years back. Nevertheless, here are some helpful tips that should apply to most people:
Don’t rule out a house just because of cosmetic issues. You’ll hardly notice the exterior of your own house, and surprisingly, "ugly cabinets" tend to fade into the background over time. And always remember that you can alter almost everything in a house, except its location.
If possible, visit the home again when it’s raining. Flooding can be a concern where I live, though fortunately, our house isn’t affected. Still, it would have been useful to know that one part of the garage gets wet during certain types of rain.
To determine if the location suits your lifestyle, beyond just your commute to work, take a stroll or drive around and explore the area. If you enjoy going to bars, is there one nearby? What about parks, stores, or gyms? Buying a house is a bit like marriage – it won’t change who you are as a person, even if you think it will. Your hobbies and interests will remain the same, and if the location makes it difficult to pursue them, you’ll eventually start resenting your home.
Buy a home that suits your current and near-term lifestyle, not a far-off version of yourself. If you enjoy nightlife and walkability, don’t pass up a place near those amenities just because you have vague plans to start a family later on.
Never waive important contingencies. Skipping something like an inspection is a risky move for your first home, especially with the large investment involved.
How long did it take for you to complete the home-buying process, from start to finish?
In total, the process took about two years. We had the misfortune of starting our search in 2021 when the market was extremely competitive, with low interest rates and cash investors aiming to capitalize on rising prices. However, once we decided on the house, the process was surprisingly quick, taking around 40 to 45 days at the most.
*Name has been changed to maintain the subject's anonymity. This interview has been lightly edited for clarity.
A final thought for readers: One of the biggest challenges in buying a home is figuring out how much house you can actually afford. And when you're researching, you might come across stories like that of a 24-year-old engineer in Maryland or a youth pastor in Ohio, which can be frustrating because the solutions they offer, such as loan sizes or lifestyles, just don’t align with your own. I understand. So, if you're willing to share your own first-time home-buying experience, leave a comment below. Your story could help provide a broader picture of what it's like to navigate today’s housing market—especially for those without generational wealth.
