Why I wish we hadn't purchased our first home

[Braden Downs]

I vividly remember looking out of my bedroom window at the gleaming Devon tower in downtown Oklahoma City. We had just finished moving in and my wife and I were still caught up in the glam of living downtown. Our 725 sqft apartment cost $1175 before utilities, a good deal compared to other cities, or that's what I told myself. Fast forward one year later and we hadn't increased our savings, we added credit card debt, but were making more money than we ever had. Why? Selfish Pleasure. Instead of doubling down on eating out, cutting our rent in half, or working harder, we make another great decision. We're going to buy a house. Now, it all worked out in the end for us. I have no idea how though! DETAILS OF OUR HOUSE PURCHASE - Sellers accepted our offer $4k below asking price - Sellers also made an additional $3500 in repairs - Sellers additionally covered $4k in closing costs - Due to severe complications with our loan company, they voided out all fees - We paid a total of $700 cash for our house, only covering the home inspection and sewer line camera. I don't know how we escaped so cheap, but we did. From what I've heard, situations like ours never happen. #blessed We put an additional $3.5k into new floors and paint. Of course one month in we had to install a new cleanout and line costing $600. Go figure. The point is we had less than $2k in savings and bought a house. If I could go back in time we would rent for another 6 months, save $6-8k, and then purchase a house. Don't rush. Renting is safe. People told me we were throwing away money. They are wrong. 1) Our rent insurance deductible was $500. Our house deductible is $2800 and 4 times as expensive. 2) The first few years of your mortgage is mostly interest anyways, so if your rent is cheaper than your mortgage, it works out. 3) You don't have to repair the house with cash that is needed elsewhere. I hope this post was helpful. Stay away from my mistakes; make your own.

[Joe Splitrock]

@Braden Downs I think it is a major problem in our lending system that we allow someone to purchase a home with $700 cash out of pocket. My security deposit is bigger on my rentals. In previous generations, cash down payment were required. 

No offense, but you had no business buying a home with that little an amount of money. They tightened up lending standards for investors, but left the same careless standards in place for primary residence. 

It seems like you have good self awareness of your situation and like you are looking to change in the future. You hit on one key point, which is reducing your excessive spending. I would recommend signing up for a Dave Ramsey Financial Peace University. It will teach you how to budget and pay down debt. 

Happiness is not connected to spending.