Something to keep in mind when looking- it's suggested you should stay in a house for five years before reselling so you build up enough equity to make it worthwhile. So make sure you can see yourself in the house/location for at least five years.

Buy the cheapest house in the nicest neighborhood you can afford.

I thought of some more- don't buy a fixer upper for your first home.

Don't buy a house as is, get an inspection. That way, if something major shows up, you can back out of the contract.

A lot of people don't do this but hire a plumbing inspector. Ours found a broken pipe under the furnace. Sellers paid to fix it and it wasn't cheap.

Inspections are critical for your purchase as mentioned above. You want to have a long enough due diligence period to not only do the inspections right away but review the reports and either negotiate in repairs (even on an AS IS purchase) or reduce the purchase price for significant repairs or cancel the purchase. Get a great inspector(s). You want to know the actual condition of the property. Better to cancel the purchase than take on something that needs major work and lots of cash to fix. There is a time period for this in your contract so make sure you build in enough time. Get a good experienced Realtor. Get recommendations from family and friends that have actually used the Realtor.

Get your pre-approval first. Stay away from big box banks. Buy within your comfort level which is usually a lesser mortgage than what the LO says you can get. Don't stretch. If you are going with an FHA mortgage or VA mortgage, make sure your Realtor is familiar with the process or find another agent. Some agents have no idea about financing and that can hurt you when looking for the right home. Your Realtor and your lender are a team that is there to help you.

Advice my mom gave me when I bought my first home....Don't fall in love with something that won't love you back.

I agree with jewel above: don’t buy a home with someone who is not your legal spouse. Sure, you love him and he loves you. Right now. But things could change down the line and a mortgage held by two separate and distinct parties can be a MAJOR headache.

If he does plan on paying rent do not expect it. If you can not afford a house on your own income, now, do not do it. If he does pay rent either put it aside or use it for things on the house.

Fenced yard for doggy!

Don't use inspector recommended by your real estate agent.

All very good advice. One more thing. There is no landlord to call when something breaks. Homeownership entails maintenance that is done to keep things from breaking. This requires time, money and energy. Best to you ..

My home inspection for my first home included tips on some regular maintenance items. I could then figure out if it was something that I wanted to tackle or if I needed to find a professional. Keep a book of what you have done (or do yourself) and when it was done.

Start gathering a list of service companies/individuals based on recommendations from trusted acquaintances. There will be maintenance to get done and in an emergency situation you do not want to have to just pick someone to get the repair done.

Shop around for mortgage lenders. Ask what your options are for saving money in the short and long run.

Are you ready to deal with both a home and yard? Or would you like to leave the outside maintenance and yard work to someone else? Be sure to consider all the HOA/Condo rules if that applies.

Interview and find a realtor you can trust to be on your side. Be honest with them as to your "must haves" and "nice to haves". Stick to YOUR budget! Enjoy looking and be patient.

Thanks everyone. This was awesome feedback. And point taken about the boyfriend. I completely understand that part. Busjane, that is great advice and a good way to have a contingency plan if and when something goes wrong. Thank you

Buy for LOCATION... in the best location you can afford. .... most other things can be changed but not that. You will net greater appreciation along with the other perks associated with a great loc. I’ve owned five homes over the years & always purchased for location.

I like to look at the property records to see the ownership history. I prefer houses with fewer owners and all owners staying at least a year (no quick flips).
It is important to be honest with your self and your realtor about your lifestyle and your priorities. A great kitchen will not make you into a cook, regardless of any fantasies to the contrary. So, if the kitchen isn't overly important to you, your pool of potential properties increases. However, if your favorite activity is cooking, think long and hard before buying a house with a substandard kitchen.
Don't fall for the idea of remodeling to suit you. Buy something you can live in for a few years. Recognize the value in improvements that have already been made. Window treatments, deck, landscaping, garage and closet shelving, laundry room cabinets, etc are all examples of upgrades which are expensive to do but don't add much to market value. It is better to have such things already in place so you can update or modify when you choose, rather than need to add new.

I will not presume about the boyfriend - I know that people get married for all kinds of reasons, and, conversely, they DON'T get married for all kinds of reasons too. Given that, if you do decide to embark upon a home purchase with "the boyfriend" as Gov Cuomo was fond of saying, make sure that there is a document outlining the equity/payment/etc., so should it be needed, it's there. Also, research "tenancy in common" versus "joint tenancy" and how they work in your state. Depending on your situation, you may prefer one over the other. And remember that people die suddenly and that if you are not legally married, you (or your partner, should you be the deceased) may find yourself in a situation where you are arguing with the deceased's relatives over your own home if you opt for the joint tenancy without accounting for that in your will. My now husband and I purchased our home before we were married, so we made sure that the title was set up the way we wanted - not all title companies will ask, so make sure you do.

All good advice above - especially not spending as much as people tell you you can afford.

Carefully consider the location and what surrounds the house - is it fully developed residential? Are the areas immediately surrounding the house zoned single family residential (if that's what you're interested in). Take a look at the aerial view on Google maps - what's surrounding you that may make life unpleasant - railroad tracks, busy highway, heavy equipment operator, etc. Will traffic noise bother you when you're sitting on your deck? If so stand around outside for awhile and listen.

Try to be objective and rational - you can fall in love, picturing yourself in the house and irrationally overlook serious flaws. Remember realtors do not represent your best interests - they are paid by the seller and their motivation is to sell the house. We have always had a real estate attorney advise and review all documents before we sign. Small price to pay for the peace of mind.

Buy something where you are comfortable making monthly payments - even if - lord forbid you lost your job the day after you close. Even if the BF is moving in, make sure you can afford it on your own. I bought my first place as a single young woman w/ a BF & a dog too - the BF didn't last but I enjoyed my first home solo. Maybe consider a condo for your first home - that way you're only responsible for maintenance INSIDE the walls - someone else takes care of things like landscaping, roofing, or other potentially costly repairs. Fenced yard for the pooch IMO is a must, dogs get old and their needs for a 3AM potty breaks can become more frequent.

You guys are awesome! Everything here is such valuable knowledge. After speaking to two lenders and really considering the numbers, I’ve decided to postpone my home owning journey. I got wrapped up in the low interest rates and my credit score, but forgot about an important goal of mine, which is paying down student loans.

My rental right now is way below market and my expenses are too which gives me enough extra money to quickly pay down my debts. Buying a home, the numbers would cut into my ability to get out of debt. I know most will probably say to buy a home, but it’s important for me to get my debts under control first. But your advice will help me once I start looking again. The goal is two years and I should be debt free! Thanks all and feel free to continue to share. This is something I plan to keep forever. Lol

Debt-free sounds nice too!! Seems like a good decision. And you can always start looking, get an idea about what you can afford, figure out needs vs wants, keep running the numbers. House hunting is a hobby of mine - even though I'm probably never moving again :-)

I love looking at houses Paula. It’s another thing that has gotten me side tracked with my goals. Lol

One and a half to two years sounds like it should be a good time. Not scientific but I think there will be people who are not as careful as you are who jumped into owning a home or even two who may find that they are unable to make their payments.

Getting out if debt is a good plan. But sometimes rent is just as expensive as a mortgage payment with no equity.

Being almost older than dirt I remember when it was suggested that younger people on a career track not purchase a home until they had been with a company for at least ten years or in their mid thirties. Lower level employees were seldom helped with any move. It was a lot easier to have an apartment with a lease that gave a month or so penalty than to have to pay both a mortgage and a rent payment at the same time. While buying a house can be good but when young can bind you to an area decreasing your worth to some companies. Being able to move across country or around the world on a moments notice can increase your income greatly.

Houses around here (like a lot of other places) are being snapped up as soon as they hit the market, for much more than last year. I don't think it's sustainable. Waiting two years shouldn't hurt you. Maybe they'll be more to choose from, and prices shouldn't be crazy (if my crystal ball is right).

Seabornman has a good point. We bought our house 20 or so years ago in an up market and I was surprised to see so little equity when market was down. So if you buy in an up market and sell in a down market you may be sadly surprised. It's hard to know for sure if market prices will be down in a few years or not. You just have to do what is right for you at the time.

Late to the game, and sounds like a wise move to wait two years in favor of paying down debt. I'd add: even now, keep an eye on real estate adds, note the names of agencies and realtors who handle houses you like. When you are within a few months of being ready, find yourself a good buyer's agent. We lost one house because we didn't correctly understand the real estate process; if we'd been working with a buyer's agent I bet we would have gotten it.

Thanks nickel_ag. Excuse my ignorance but is there a difference between a realtor and a buyer’s agent?

Technically, all realtors work for the seller even if they are working with you (the buyer). They earn a commission when the property sells. Buyers agents work for the buyer, and the buyer pays the agent a fee separate from the selling commission.
I used to work for a realty agency. I was talking to my boss about this issue. He said technically that is all true but if a realtor is working with a buyer they want the buyer to be happy as well so will "work for the buyer". ( I don't remember his exact words.) Keep in mind if you don't buy a property the agent you are working with doesn't make any money so they want you to buy sonething.

Foid for thought - Another thing you may want to keep in mind are interest rates. They are incredibly low now. I read in a newsletter:
"Say you could only spend $2,100 a month on your mortgage... but interest rates were 19%. How much house could you buy on $2,100 a month when interest rates are 19%?
The numbers might shock you:

At 3% interest, you can buy a $500,000 house with a $2,100 monthly payment.

At 19% interest, you can buy a $125,000 house with a $2,100 monthly payment.

You can buy four times as much house when interest rates are at record lows versus when interest rates are at record highs."

If you sign a buyer agency agreement, the agent works for you, not the seller. The agent still gets paid out of the commission paid by the seller. That’s how it is where I work in Mass.

I think you have made a wise decision. I was going to advise you to wait. You came to that conclusion yourself.

Right now, we are in the middle of a pandemic and low supply due to the 2008 real estate crash. Demand is up because people want security. The low interest rates are also generating demand. This is forcing prices to go higher.

With job losses come foreclosures. It's only a matter of time. Demand will start to drop and there will be oversupply. There will be good opportunities to purchase in the next year or two.

I suggest that you continue to pay down your debt as soon as possible. Start to save for an eventual purchase. Spend the next couple of years educating yourself about the process. Hanging out at this website on a rainy Saturday morning will provide you with an enormous amount of useable information.

While the dog will never fail to pay their fair share, boyfriends and spouses are more problematic. In the future, should you decide to purchase, be certain to engage an attorney to explain to you the various forms of ownership, set up partnership agreements in writing and protect both of your interests. The law does some of this for married couples, but for committed couples a partnership agreement is a necessity.

You are wise to pay down your debts before purchasing a home, as this will improve your credit score. Bankers may tell you that you qualify for a $250,000 or more loan, but ask yourself if you'll have money available for furniture/flooring/window treatments for all those rooms in the house, the appliances you may need, furnace/A.C. checks, real estate and school taxes (they always increase), home insurance, chimney flashing/mortar/siding and roof repairs/replacement, storm damage to house/trees, etc. I agree that you should avoid an older home (particularly those with a well/septic system) unless you have written evidence that the roof, wiring, plumbing, insulation, windows, doors, furnace/boiler, A.C. were updated and completed by licensed, insured tradesmen and permits were obtained as needed. You'll want to view records of heating/cooling costs, sewerage rates, etc., as well.

When you see the costs, you'll better understand that older homes are not the best choice for first time purchasers. A 5' x 8' bathroom gut and renovation with insulation will easily cost $25000 if done by a contractor. Kitchen renovations can cost two to four (or more) times that amount. Tree roots clogging sewerage lines can do a great deal of damage.

Spend this period of time researching costs of home ownership (including landscape maintenance and installation fees) and ROI (return on investment), should you make additions/alterations.

Buy appliances only if they can be serviced/repaired in your area by factory authorized personnel. Nothing worse than waiting months for a repair...Read articles on appliance service agreements and their need/cost.

Avoid mortgages that penalize you for additional payments on the principal, or want you to sign for a balloon payment mortgage. Carefully read the amortization pages to see what the mortgage will really cost you, over 15 years vs. 30 years, as the difference is staggering.

Owning a house can be daunting for a first time, single home owner, particularly should you find that your job may be phased out.

Find your own home inspector who has been certified by ASHI and does independent work. Too many of them have been intimidated by real estate agents who have said that if the inspector finds too much wrong, the agent loses their sale, so they'll never use that inspector, again. Alternatively, beware of inspectors who aren't qualified to inspect roofs, etc. but will notate 100 items they recommend be upgraded whether now or in the next 10 years. If you have doubts, call in your own expert. It's worth the cost for peace of mind.

ceilsan does have some good ideas although the OP has probably made up their mind by now. However sometimes paying off your creditors completely can lower your credit score. Lenders do not like seeing sharp changes of any type. Too many especially older people who have not had any debt for years find that if they need a loan they will be turned down or only receive a much higher interest rate when they do receive a loan. I was really pissed when I was turned down for a car loan even with a credit score over 800 two years ago because of no active credit having paid every thing off.

In these uncertain times perhaps a return to the idea of having a 30 year loan even with a higher interest rate than a 15 but paying extra each month to lower the length of the loan. People may be able to pay the regular payment amount on a 30 year loan if they lose their source of income but might not be able to pay the higher monthly amount on a 15 year loan.

Just need to chime in here to rebut a previous comment, and that is that if you hire a good Realtor that you trust (and you shouldn’t be hiring a Realtor that you don’t trust), then you can use a home inspector that they recommend. I recommended my home inspector to my buyers, and used him for both my homes. He was quick to schedule, very thorough, and provided a well-written report. I’ve seen some home inspectors that clearly use some program where they just check boxes and it spits out a generic, and pretty useless, report. My guy took pictures of everything and included them.

But, don’t use an inspector affiliated in any way with the seller or sellers agent. Obviously.

Understand what fixing things really costs. My friend convinced me to buy for potential. 60 days and 75k later I’m not sure I agree with that.

I like your plan to pay off your student loans before you jump into home ownership. Use the next 2 years to research the market, look at online listings, watch what sells fast, etc. That way you'll be more knowledgeable about the area when it's time to get serious about a purchase.

Be aware that the company Travis Smith linked to is a English company and can do nothing for those living in the US.

Hi everyone!! Not sure how many of you are still following this post that commented, but wanted to let you all know that I have officially paid off all of my student loan debt!!! Woo-hoo!!! I took advantage of the 0% interest and became really aggressive with getting down the balance. I’m in limbo with buying a home because of this terrible market for buyers, so I’ve decided to continue to hold off until the market starts to settle and just continue to put money in savings. Also, I’ve been in Atlanta for more than 10years and I’m not sure if this is where I want to purchase a home. I’m going to take some time to sort that out. My dream has always been to experience living some where in Southern California but sigh — cost of living. Anyways, just wanted to let you all know I crossed that major milestone!!!

If you can afford the payments, go with a 15year or 20yr over a 30yr. With a 30 year, you pay almost all interest for the first 7 years of the loan and don't gain any equity unless values go up. With a 15 or 20, your balance falls much more quickly and you pay far less interest in the long term. Also, do not use a large bank for your mortgage. The big banks will rip you off and charge you points. Use a mortgage broker or a small community bank or credit union. If your credit score is over 740, you should pay zero points.

Get the 30 year loan and pay as if you have the 15 year loan. add extra money to your payment every month that goes to principle, and you have the same effect.

For example, $300k loan, 4.04%: 30 year fixed, $1440 PI payment. 15 year fixed, $2078 payment. Get the 30 year loan and pay 2078 per month, and you have the same effect.

Congrats on paying off that debt!!

Thanks mxk3!!