(From Someone Who’s Been There)
If you’re thinking about buying a house, let me share a few things I wish I had known before I signed on the dotted line. These aren’t your typical Google search results—they’re real-life lessons from someone who’s bought and refinanced multiple homes.
This post won’t break down every type of loan. Instead, I want to arm you with practical, often-overlooked tips that will help you avoid the headaches I learned the hard way.
My Backstory as a Homebuyer
I’m currently living in the third home I’ve purchased—and fingers crossed, it’s my last. I’ve also refinanced a mortgage, right before the economy took a turn in early 2021. I’ve been through the ups, downs, and everything in between. Through it all, I’ve done my homework, learned from mistakes, and picked up wisdom that I’m now passing on to you.
For instance, I used to think refinancing was a bad idea. But I ended up saving a ton of money over the life of my loan. My monthly payment dropped, my payoff date stayed the same, and after only $500 in closing costs, I actually got a refund check for about $200. If interest rates drop again, I’d definitely consider refinancing.
Let’s get into the home buying advice you don’t always hear—but definitely need.
1. Check Your Credit Score First
Before anything else, check your credit. For a conventional loan, a score of 620 or higher is usually required. But the better your credit, the better your loan terms.
Once your credit’s in good shape, get a pre-approval letter from your bank. This shows how much home you can realistically afford—and helps guide your realtor.
I personally love Credit Karma. This app has been a game changer for me. It gives you the tools you need to repair your credit score and keep on a good financial path. Best part, it’s free.
2. Build a Realistic Budget
Take a good, hard look at your current monthly spending. Compare your rent and bills to what you’d be paying on a mortgage. What can you realistically afford without stretching too thin?
Write it all down. Review your monthly bank statements and see what you can cut out. Do you really need a Starbucks coffee every single morning? Soda and gas station pizza for lunch? You may need to make sacrifices to get started.
3. Understand That Mortgage Payments Can Change
Keep in mind that the mortgage amount you sign at closing is not guaranteed to be this amount forever. Even with a fixed-rate mortgage, your monthly payment can increase. Why? Taxes and insurance often go up with the cost of inflation
Example; when I refinanced in early 2021, my mortgage payment was $900/month. Fast forward to 2024, I now pay $1230/month. That’s a big difference in a short amount of time.
Don’t strap yourself in with no wiggle room for possible changes in the future.
4. Research Property Taxes by Location
Each location is a little different when it comes to taxes. Research the community you’re moving to and what the average cost of taxes are. Example, lakefront properties usually charge more in taxes than a house in the middle of town.
They differ between states too. Right now, New Jersey has the highest property tax and Hawaii is the lowest in the United States.
Know what you’re getting into before you fall in love with a location.
5. Choose the Right Realtor
Find a reputable and trustworthy realtor. Do your research. Sometimes, realtors and used car dealers aren’t far from being one in the same.
You have your choice in realtors. You can look at houses with any realtor as long as you don’t sign a contract. Just because you start looking with one doesn’t mean you have to stick with them if you feel they’re dishonest.
There is no reason to sign a contract prior to you putting an offer on a house and beginning the purchase agreement.
6. Downsize Before You Move
Start decluttering early. Downsizing before closing helps in two ways:
- You’ll have less to pack and move.
- You can sell items and put the cash toward moving expenses or closing costs.
Use Facebook Marketplace or host a good old-fashioned yard sale. Every little bit helps.
7. Don’t Make Big Financial Changes
Here’s a big thing nobody says. Do not withdraw or deposit large amounts of money during the process of buying a house. Banks get suspicious when there is outside income or deposits.
I learned this the hard way. As a waitress, I decided to deposit a bunch of saved cash right before buying my first house. I thought it would look better to have the money in the bank. Wrong. The bank flagged it, and I had to write letters explaining where the money came from—stressful and totally avoidable.
I had to explain to the bank where the money had come from and that it was not a gift. It was scary because during this, there was the fear of being rejected because I had saved money that I had earned and put it into my bank account for the sole purpose of buying a house.
Don’t pay off any loans. You may think it’s a great thing to pay off the car because it shows you’re responsible. It actually drops your credit score when you pay off a loan because you’re closing a line of credit and banks again want to know how you were able to pay it off meaning you will have to write even more letters to lenders.
8. Keep making your normal monthly payments.
Also, another lesson is don’t change jobs while you’re looking for a house. Banks look at how long you’ve been working at your current employer as a commitment. If you’re committed to a job, you will be committed to paying back your loan.
I’m sure there are exceptions when it comes to moving because of a career change. Make sure you talk to your realtor and lender if this is the case with you.
Final Thoughts
Of course, there are the usual things—like knowing your down payment, figuring out your loan type, and estimating moving costs. But these tips? These are the lessons that make the difference between a smooth home purchase and a stressful one.
Always keep an open line of communication with your realtor—they’re there to help you navigate this process. I’ve had great luck in the past discussing all of the home buying things with my realtor. In the end, they’re getting paid to help you find your dream house.
Buying a home is one of life’s biggest decisions. It’s exciting, scary, overwhelming, and totally worth it. I hope these tips help you step into your homeownership journey.
Want more real-life home buying tips? Drop your questions in the comments—I’m happy to share what I’ve learned!
Always,
Kerri
