Why First Time Buyers Can't Afford Their Houses? | First Time Buyers Avoid These Mistakes

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[maltpatriot]

When I bought my house, the guy handling my paperwork told me “with what you make, we could get you into a much bigger home”. I told him I didn’t want to be house poor. I regretted not getting the bigger home a little bit at first but I know 3 people who are now loosing their homes who listened to that same crap.

[deanvoss]

Live within your means and don't worry about what everybody else has or drives

[RalphJBater]

Everyone seems to forget that the bigger home also costs more to heat/cool... more to furnish/decorate.... more expensive for certain maintenence projects like painting/roofing/siding etc.

[smittyb]

Thank God in heaven my queen & I started buying our house back in 2009 through the 1st time home buyers program...Lord willing we will have it paid off in a year & a half...we will pay off a 30 year mortgage in 16 years 😊

[Ms.T_]

I’m dealing with this very issue right now. My mortgage has increased over $600 in 2 and a half years. I’m actually regretting buying a home at this point.

[marvoinfo]

When I got my home I bought a home based on minimum wage. I said if I lost my career job could pay this house with just minimum wage job. I also paid off student loans and all debts soon after I got my house. I chose a decent neighborhood and bought an older home with no neighborhood fees or association. Looking back I’m glad God gave me wisdom to make that choice.

[elchavinha]

My mortgage is about 10% of my income, I have zero debt aside from mortgage and it's amazing how freeing it is! My home isn't the biggest, or the nicest but it's perfect for me as a 30 year old single guy🙏🏼 praise the lord

[catherinemedina]

When we bought our home, we used the one income step. If one of us loses a job, the other is able to pay for the mortgage. Unfortunately, now is harder for people to with inflated prices.

[nikkis.]

I didn't know this beforehand, but thankfully, my salary has doubled since purchasing my home 8 years ago, so I've been able to keep up with the increases in taxes and insurance.

[masterk]

Currently renting never owned a house before, people love to talk about the benefits of buying but always neglect to mention stuff like this lol & the repairs alone are risky. I still want to buy in the future just preparing myself fully for this big commitment

[AR-tkcr]

My sister bought first home (current home) with the thought that either she or her husband can comfortably afford should one of them stop working. Within a year she had to buy a new roof for $15k. That was hard but at least they didn’t have a mortgage that was killing them too. Savings for unforeseen expenses is a MUST.

[KJxxoo]

I’ve watched family sell their houses and downsize because they couldn’t service their mortgages with the rates increases. My partner and I just bought our first home and bought well below our capacity because I didn’t want to go through the stress of having to sell / buy again. It’s certainly not our dream home, but we are comfortable financially, which was important to me.

[MarnelGarcon]

As a Mortgage Loan Originator with 16 years of experience, it's really sad. We qualify people based on Debt to Income ratio but within months, taxes go up insanely on homeowners! That's just crazy.

[abvincent]

In July my AC went out - it was $13K to replace. In Nov my plumbing had to be replaced (jackhammers, fix flooring, drywall, paint a HUGE mess) - it was $15K. I bought this home in Feb 2020 with 5% down and remodeled nearly all of it before refinancing Oct 2020 for 30 years at 2.75%. Luckily I bough way below my budget and my home has about 50% equity now (I am in Phoenix and my home has gone up a LOT since 2020). To all you first time buyers - be prepared for AC, plumbing and laundry list of other unknowns because no inspector will find them and they can sink you if you aren't ready for $25K+ in expense in a short period of time.

[toles]

Yea, I’ve had this home for 5 years and the property taxes increased every single year. I’m so happy I purchased well below budget. I can’t imagine purchase a home right now with those interest rates.

[dlinder]

As an active agent and recent home buyer in Ga Mrs Shaheeda is preaching truth here guys!

[Freegrace]

When we bought our house about 7 years ago, the loan officer encouraged us to spend more and stated we could afford more than the properties we were looking. On paper, it is definitely different than in real life. We got caught in the 2008 loan debacle and had to sell the house we loved because of an unaffordable payment increase (ARM). We went way below what they approved us for and looking back, I'm so glad we learned from past mistakes. Please be careful, and please don't become house-poor.

[danieldhardman]

I bought my first house as a single father for me and my two children. I thought, "Hey, I can afford that a month, " and thought that was all there was to it. I learned quickly that that is NOT all there is to it. If you can't afford the mortgage AND the emergencies that occur (water leak, HVAC breaks, roof repairs, random high utilities, etc.) you CAN'T afford that house. It takes a reliable source of income and a significant savings to afford a house.

[LifeBetweenTheDash]

Really good tips.

I find people buy too much home because the bank says they can afford it. Always buy based on your own budget.

It's great to have a fully funded emergency fund in place before you purchase a home.

[atlhawksfan]

I’m seeing people in the neighborhood giving their cars back to the banks so they can afford their homes. They probably thought they could afford both, but with everything going up in price, some sacrificed and became a one car family. Times are rough out here.