I made a lot of mistakes on my first home purchase. Here’s why I don’t regret it
Everything doesn’t have to be perfect for a home purchase to make sense.
- Several years ago, I bought my first house.
- I made several mistakes, including not shopping around until I got my mortgage.
- I don’t regret the purchase because I made a profit on the sale of the house despite the mistakes.
When I bought my first home many years ago, I didn’t have a lot of financial experience and made some bad decisions during the buying process. Unfortunately, this ended up making my monthly mortgage payments more expensive than they would have been had I made better choices.
Despite the mistakes I made during the buying process, I don’t regret buying that first home. Here’s why.
These are the big mistakes I made
There were two big mistakes I made when I bought my first home:
- I did not shop for my mortgage: My realtor at the time recommended that I work with a specific mortgage lender she had worked with in the past. I took his advice and contacted only this lender and no other. Unfortunately, this means that I missed the opportunity to compare different interest rates. It’s very likely that I ended up paying more interest than necessary since I didn’t shop around. The lender also gave us a lot of hassle during the application process, which made the transaction more stressful than necessary.
- I paid a small deposit: I only put 10% on the house, which my real estate agent encouraged and my mortgage lender allowed. Because of my small down payment, I had to pay several hundred dollars a month for private mortgage insurance. This insurance did not protect me if I ceased to be able to make payments, but it protected my lender in the event of foreclosure. If foreclosure occurred, the lender would not face uncompensated losses due to the PMI I was paying.
Together, the cost of the PMI and the fact that I probably ended up with a higher interest rate than I should have made buying my house much more expensive each month and over time.
This is the very good reason why I do not regret the purchase
Despite these mistakes, I don’t regret buying my first home. This is because I owned it for several years and then sold it for a very substantial profit which was enough to give me a big down payment for my next home.
In the end, since the property appreciated in value and I was able to sell it for more than I paid, the purchase was a good decision that helped me build a legacy long-term.
Now, just because everything worked out well in my situation doesn’t mean it will for everyone who makes house buying mistakes. Ideally, it’s best to shop around for the lowest mortgage rate possible. and to make a larger down payment.
But, the reality is that we do not live in an ideal world. You may need to buy when rates are up or before you have the money to drop 20%. And, as my situation shows, properties tend to increase in value over time and sometimes a purchase can work out even if it’s not made in ideal conditions.
As long as you make a wise choice about your purchase, don’t overpay for your home, and are sure you can comfortably afford the payments, you have a good chance of a profitable home purchase. at the end.
The Best Mortgage Lender in Ascent in 2022
Mortgage rates are rising – and fast. But they are still relatively low by historical standards. So if you want to take advantage of rates before they get too high, you’ll want to find a lender who can help you get the best rate possible.
This is where Better Mortgage comes in.
You can get pre-approved in as little as 3 minutes, without a credit check, and lock in your rate at any time. Another plus? They do not charge origination or lender fees (which can reach 2% of the loan amount for some lenders).
Read our free review