If you are nosy about real estate like me, or want to buy a house and are curious about getting a mortage, then this video is for you.
In this video I discuss all the details of our mortgage. I share our much house cost, the amount we paid for PMI, the fees we paid for closing, and all the nitty gritty details.
It’s fun getting nosy in someone else’s money, isn’t it?
Buying Our First Home
We bought our first home two months before our wedding. We knew we wanted to start off together in a home and found a house we loved the first day we looked at houses. Since the market was already hot in our area, houses were flying off the market.
We put an offer in that day! After some back and forth with the seller we settled on a purchase price. We were both thrilled and terrified that we didn’t look at that many houses. It was one of the first five houses we saw and we knew as soon as we looked that we could live there happily.
What We Did Wrong
Most financial experts recommend putting 20% down on a home but we definitely did not do that. At the time we were paying for a wedding and had other expenses so we went with a FHA loan and a 3.5% down payment. I knew I should have saved up more for the house, but ultimately did not want to wait a year or more to get the full down payment.
Speaking of down payments, I actually wanted to put 5% down but our mortgage lender messed up the paperwork and only did 3.5%. I was too nervous by the time we got our final documents to try correcting it again because I was worried something would cause it to not work out. In retrospect that was incredibly silly and I should have stood my ground over her mistake, but after experiencing a failed house purchase I was too nervous.
Obviously I did not like our mortgage lender after she messed up our down payment. We should have shopped around more and found more options for lending. While we got a good rate, I did not have a positive experience and it is possible another lender would have been better.
What We Did Right
We worked with a realtor we trusted. This makes a huge difference when you are a first time home buyer. When you know your realtor won’t push you in the wrong direction just to make a sale then you can relax and enjoy the home buying process even if you don’t understand everything that is happening.
Our interest rate is also quite good! 3.65% interest on a mortgage loan is a great rate even if it wasn’t the absolute bottom rate. Two years later rates have gone up a full percent (or more) and it’s not worth it for us to refinance even to get rid of our PMI.
We bought in a great neighborhood. At the time we bought houses were under $100 per sq ft and now you can’t hardly find that in one that hasn’t been remodeled. Houses are going for much higher amounts and we’ve gained $30,000 in equity at least since buying. We are in one of the countries hottest neighborhoods and that is great news for us as homeowners.
Our house is the perfect starter home for us. It’s in a great neighborhood, we have plenty of space to grow into, but not too much space that it is overwhelming. We have a huge backyard which is great for our dogs. We have an active neighborhood association and our street has fantastic neighbors.
Overall we are thrilled with the house that we chose and love where we live.