A Guide to Buying Your First House

Buying your first house might seem intimidating at first -- however it is actually quite easy. I bought my first house last year in the depths of the financial crisis. Everyone was telling me how stupid I was for buying a house 'in this market' and how I was just daydreaming.

I had NO credit at all. I was making more than minimum wage but not anything to go brag about. I was just frustrated that I knew that every time I was paying rent at my apartment I was literally throwing money away that I would never ever see again. My apartment in the previous years would cost between $400 and $600. Remember those numbers.

The first thing I did was to contact a local loan officer and have him review my case. He suggested that I go and get an unsecured credit card considering I had absolute no credit to my name at all. I had never owned a credit card. I went down to the bank and gave them $300 for the unsecured credit card. I was able to generate a good enough credit score within 6 months where the lender was willing to deal with me. Keep in mind, those 6 months were when the financial crisis hit very very hard.

After I was set with the loan agent I went over to a realtor and started talking with him. This was the fun part. Instead of going to grab a burger for lunch every day I would go look at houses with my realtor. I saw probably close to 20 or 25 houses within a month. At first my thoughts were to find the worst place I could find, or rather the cheapest place, buy that, renovate it and then sell it for money. This turned out to not be an option as my loan would not provide for remodelling. So I turned my attention to finding a place closest to the downtown area. I found a house for two-story house for $75,000 and immediately fell in love with it. As soon as I pulled up to the curb I knew that I wanted the house.

2 weeks later -- I bought it and have been happier ever since. My 'rent' went up a little -- I pay $650 a month with taxes and insurance and everything, but I am no longer throwing that money away -- I am actively paying down my mortgage and in effect treating it like my own private savings account.

Buying a house was one of the greatest decisions I have ever made. I'd highly encourage you to go out and get a house now!