So You Wanna Buy a House? Let’s Talk Reality.
I remember the first time I thought about buying a house. I was sipping a terrible gas station coffee, staring at my rent payment, and wondering if I was just setting money on fire every month. Maybe you’ve had that thought too? “I could be building equity instead of paying my landlord’s mortgage!”—Ah yes, the American dream.
But let me let you in on a little secret: buying a house is not just a financial decision. It’s an emotional circus with paperwork and snacks. And if you’re not careful, it can turn into more of a nightmare than a dream.
So let’s talk about how to actually buy a house—without letting it ruin your life.
Step 1: Check Your (Actual) Numbers
Most people try to budget before they understand their spending. Big mistake. Instead of guessing how much house you can afford, take one month and track every dollar you spend. Yup, every single one. Then, once you’re staring at your reality (and wondering how you spent $240 on DoorDash), you’ll have a clear picture of what you can actually afford.
Forget the old “three times your income” rule. Your lender might approve you for more than you’re comfortable with—because, newsflash, bankers don’t care if you ever eat out again. You have to decide what fits your real life.
Step 2: Save Money—But Do It Your Way
Look, I know everybody says you need a 20% down payment. But here’s the truth: you don’t. Plenty of loans let you buy with 5% down, and some are even lower. (VA loans? Zero down. USDA loans? Same.)
If you can save more, great. You’ll avoid private mortgage insurance (PMI), which is just extra money you pay to protect your lender in case you default. But if you wait until you have 20%, you might be dusting off your retirement cake before you get the keys.
That said, please don’t empty your savings just to buy a house. You’ll need an emergency fund, because guess who handles the broken water heater now? You.
Step 3: Understand the Hidden Costs
The purchase price is just the beginning. Homeownership comes with delightful little surprises like property taxes, maintenance, and random repairs. Fun fact: the average homeowner spends 1-4% of their home’s value on maintenance every year. (So, on a $300K house, that’s up to $12K annually. Yep.)
And closing costs? Plan for 2-5% of the home’s price. They sneak up on people all the time, and I’d rather you be informed than blindsided.
Step 4: Get the Right Loan (and the Right Lender)
A mortgage is basically a debt pet. You’ll have it for years, so you better pick wisely.
- Fixed vs. Adjustable: Unless you love gambling with your house payment, stick with a fixed-rate mortgage. Adjustable rates might look cute at first, but they can balloon when you least expect it.
- Loan Term: 30 years is standard, but a 15-year mortgage will save you a small fortune in interest. Just make sure the higher payment won’t wreck your cash flow.
- Shop Around: Don’t just go with the first lender you talk to. Compare rates, fees, and, most importantly, customer service. (Because you do not want a nightmare lender.)
Step 5: Find the Right House (Without Losing Your Mind)
Okay, house hunting is fun. Until it’s not. Here’s my best advice: don’t fall in love too fast. That cozy bungalow with the charming porch might have termites. That “fixer-upper” might be a money pit.
Make a list of your must-haves vs. nice-to-haves, and trust your inspector. If they say the foundation is cracking like an old sidewalk? Walk away.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
Step 6: Make the Offer (and Survive the Stress)
Negotiation is an art. Your real estate agent should guide you, but here’s the deal: bidding wars are real, and sometimes the right move is to wait. Don’t stretch yourself just because someone else wants the house too. There will always be another house.
And once your offer is accepted? It’ll feel like a major victory—right before the never-ending paperwork begins. Just brace yourself.
Step 7: Get to Closing (And Finally Exhale)
Once you’re under contract, you’ll go through an appraisal, a home inspection, and a final approval process. It’s normal to have last-minute panic moments. Your loan officer might ask for the same document five times. Just breathe.
At closing, you’ll sign approximately 7,294 documents, wire a terrifying amount of money, and then… it’s done. You’ll get the keys and officially become a homeowner.
Pop some champagne (or, more realistically, collapse on the floor in relief). You did it.
FAQ: Because I Know You’ve Got Questions
- Do I really need a realtor? Technically, no. But unless you’re secretly a contract expert, get one. A good agent will save you time, money, and regret.
- What if my credit isn’t great? There are plenty of loan options for lower credit scores, but be ready for a higher interest rate. Improving your credit first can save you a lot over the years.
- How much should I spend on a house? Enough to sleep at night, not so much that you can’t enjoy life. (A decent rule? Your mortgage, taxes, and insurance should be max 28-30% of your income.)
You Got This
Buying a house is a big deal, but it doesn’t have to be terrifying. Arm yourself with real numbers, take your time, and don’t let the process bully you. You’re in charge here.
Want more no-BS money advice? Subscribe to the newsletter or listen to the Get Out of Debt Guy podcast. Because debt and homeownership? They go hand in hand—so let’s do this the smart way.
