The day I closed on my first home was met with mixed emotions. On one hand, I was excited to take a big step in my life and towards my financial goals. I had found the perfect investment property that would serve as my primary residence for at least the next year—a cute little bungalow in an area that was sure to significantly increase my property value in a few years.
Yet, there was a bit of anxiety as I walked through the door. Was I making the right decision? Would buying this home be a blessing and not a curse? Would I be cleared to close, or would one final run of my credit report show something that would stop me from being able to purchase the home?
I swallowed my fears, said a little prayer, and proceeded with the process of signing on the dotted line. The home was officially mine, and getting the keys to my new abode brought a wave of pride. But as I would later discover while making my new house a home, there were many things I wished I had considered before buying my first home, and even more so now that I’m in my second one.
“Purchasing a home is a beautiful experience,” shares Lauren Cobb, realtor at Keller Williams Peachtree Road in Atlanta, Georgia. “I’ve seen real estate change the lives of many clients, including myself, by buying at the right time and within budget. It’s also a unique experience for each buyer. No buyer has the same experience as their family or peers.”
With that in mind, here are five tips I wish I'd known before buying my first home.
1.The underwriting process is thorough; they will examine everything.
The underwriting process for my first home went relatively smoothly. I had just gotten out of debt and had a great credit score. I’d been at my job for four years, so I could show consistent income. I didn’t have any student loans or car payments to consider, and I didn’t anticipate taking on any new debt. I was glad I had worked hard to get my finances in order before going into underwriting. But it’s not always that easy, and here’s why.
Once you get pre-approved, you should generally expect your lender to ask for one month of pay stubs, two months of bank statements, and two years of W-2s to start the underwriting process. This can vary depending on the type of loan you’re going for, where your income comes from (W-2, your own business, etc.), and the industry you work in. During this time, you shouldn’t take on any new credit as they will compare your original credit report to the one pulled right before closing.
In HGTV host Egypt Sherrod’s book Keep Calm, It’s Just Real Estate: Your No-Stress Guide to Buying a Home, she shares that “banks approve you for your mortgage based upon your credit score and savings at the time of approval. Your approval is contingent upon those items remaining the same through closing.” In other words, any new additional debts will impact your loan from closing. Even something as simple as using Afterpay or Klarna will be treated as an installment loan, and you will be asked to provide documentation for that transaction.
I recommend not making any major purchases before you close on your home as it can determine if you get a final approval to close and the interest rate. This will make your process much smoother, and you will be more likely to see the sweet words “Please see your attached final CD,” letting you know that you’ve successfully cleared underwriting and are approved to close.
2.Property taxes and insurance can significantly increase your monthly payments.
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One of the main reasons that many of us buy a home is that we’re hoping to escape the neverending rent increase that we’re presented with at the end of our lease. While a fixed-rate mortgage offers predictable monthly payments, what’s not often shared is how property tax and insurance increases can impact your mortgage payments.
I admittedly was caught by surprise when last year my mortgage went up by $400 because the county assessed my property value to be higher than years prior. If you purchase a home in an area where homes increase in value at a faster rate than others, you may find that the increased equity that you’re celebrating comes at a price, and depending on your budget that price may make or break whether or not you can still afford the home.
One way to combat rising property costs is to look into your state’s homestead exemption laws. According to the National Association of Realtors, the homestead exemption, at its core, “reduces the taxable value of a homeowner's primary residence, meaning a portion of the home value will not be taxed. This reduction results in lower property tax bills.” This exemption only applies to your primary residence and the requirements vary from state to state, but if you do qualify, it can save you from extreme hikes in property taxes and thousands of dollars over time.
3.Your mortgage impacts your debt-to-income ratio, affecting your ability to qualify for other credit.
In an ideal world, your mortgage would be less than the cost of rent you were proverbially shaking your fist over. But in reality, that’s not always the case. Due to high interest rates, the increasing cost of homeownership, and the type of home you’re looking for, you may find yourself paying more than you were before in rent (but hey, at least it’s going toward something that could potentially be an asset one day, right? Right?!).
Your lender may approve you for a higher monthly payment, but it’s not until you move into your lovely abode and attempt to apply for new credit or even refinance months or years down the road that you learn that with a higher monthly payment, you’ve also increased your debt-to-income (DTI) ratio. This is a number that lenders use to determine if you’re a good candidate for credit approval, and even a couple of hundred dollars can push you beyond the DTI they’re comfortable with approving.
If your income is increasing and you’re not taking on other debt, this may not be an issue for you. But as we all know, life happens, so it’s always good to be prepared and to plan accordingly in case you find yourself in need of credit in the future.
4.Ask the seller for a credit to help lower your out-of-pocket costs.
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One thing that held me back from buying sooner was assuming that I would need a lot more cash available for closing. While you should always be prepared to pay the estimated closing costs shared with you by the lender, it’s good to know that the final amount may be higher or lower than what is on the final Closing Disclosure (CD). One way to potentially lower that amount is to negotiate a seller credit.
A seller credit is money that the seller gives the buyer at closing, usually lowering your out-of-pocket closing costs. The main way to negotiate this is to use your inspection report to get an estimate of the cost of any repairs that the report highlights. For example, when I purchased my home, I knew from the inspection report that the HVAC was 18 years old and would need replacement soon. I reached out to a few different HVAC companies to get estimates on the cost of replacing the unit and used the highest estimate to negotiate with the seller to cover the cost of replacing the HVAC. I did the same with a few other needed repairs, and the seller agreed to contribute a $10,000 seller credit to cover these costs. This reduced my closing costs from $24,456 to $14,456.
Sometimes, the seller will even offer a credit upfront to incentivize the buyer to go under contract, especially if the home has been on the market for some time and/or they are looking to sell quickly. While these deals aren’t always easy to find, nor are sellers required to provide them, it’s good to know that it’s a possible option in case you’re looking for a way to lower your out-of-pocket costs.
5.Negotiate with the seller to buy down the interest rate.
Anyone who has been home shopping in the last couple of years can attest that current mortgage rates are high compared to rates during the pandemic, which, according to Investopedia, reached as low as 2.65% in January 2021 for 30-year, fixed-rate mortgages. Even a small increase in your mortgage rate can significantly raise your monthly payments and potentially price you out of your desired home. But there’s good news!
Similar to a seller credit, you can potentially negotiate a rate buydown with the seller. A rate buydown allows the buyer to secure a lower interest rate by having the seller pay the lender to reduce the interest rate. For example, you may have locked in a 7.5% fixed interest rate with your lender, but thanks to your realtor negotiating a buydown with the seller, they are willing to contribute enough money to lower your rate to 7%. Sellers are sometimes motivated to do this as it can often be cheaper than lowering the price of their home. A lower mortgage rate can significantly reduce your monthly payment and save you thousands of dollars over the lifetime of your mortgage.
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Navigating the home-buying process can be overwhelming, but understanding these key factors can help you make more informed decisions and save you thousands of dollars in the long run. Keep these tips in mind to ensure a smoother, more rewarding home-buying experience.
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Exclusive: Melanie Fiona On Making High-Vibrational Music & Saying Yes To Partnership
Melanie Fiona is back! After taking a little more than a decade-long hiatus, she has officially made her return to music and blessed us with two singles, “Say Yes” and “I Choose You.” While both singles are very different from each other, they both reflect who she is today and the type of music she wants to make. In our conversation, the mom of two expressed what she learned during her time away.
“It's interesting, even when I said it is like coming back, I don't ever feel like I really left because I was always still performing. I've still been public. It's not like I went into being this recluse person or version of myself, but the thing that I really learned in this process is that I think things take time,” Melanie says in a xoNecole exclusive.
“I think often we're so caught up in it, being on the timing of demand or popularity, or, like, striking while the iron is hot and the thing that I've learned is that everything is on God's time. That's it. Every time I thought I would have been ready, or, like, things were taking too long, I had to reship some things, personally, professionally, in my life. I also gave myself permission to make a living, not just make a living, but make a life for myself.”
Making a life for herself included getting married to Grammy-nominated songwriter Jared Cotter, starting a family, and embracing new landscapes, such as podcasting as a co-host of The Mama’s Den podcast. She also began doing more spiritual work and self-care practices like meditation, sound healing, Reiki, acupuncture, and boundary setting, which allowed her to get in touch with her inner voice.
“I wasn't putting out music, and I wasn't experiencing a number one record, but I was being a number one mom,” she says.
“I was experiencing things that were allowing me to heal and get in touch with myself so that I could make new music from a space of joy and freedom, and excitement again because I definitely feel like I did lose some excitement because of just politics and industry and what it can do to your mental health and even your physical health. So giving myself the space to really just say, ‘Hey, it's okay. Everything's right on time.’”
The joy and excitement are felt in one of two new singles, “I Choose You,” which is more of a lovers rock vibe, a tribute to Melanie’s Caribbean roots. While the Grammy award-winner is known for ballads like “It Kills Me” and “Fool For You,” she is becoming more intentional about the music she makes, calling it high-vibrational music. She says her music is a “reflection of my life,” as it captures every facet, from hanging out with friends to riding around in her car.
“Say Yes” has the classic R&B vibe Melanie is known for. However, both songs are inspired by her relationship. Melanie and Jared got married in December 2020, and the Toronto-bred artist dished on their relationship. Fun fact: he is featured in the “Say Yes” music video.
“When we first started dating, I had come into that relationship post a lot of self-work. I had gotten out of a long-term relationship, I had a year and a half to date and be by myself and do a lot of work on myself alone. And when we met, I remember feeling like this has to be my person because I feel it,” she says.
“And so when we went into that relationship, and we started dating, I was very clear. I was like, I know what I want. I'm very clear on what I need, and I'm not going to withhold my truth about myself in this process because of pride or fear of rejection. I know you love me, but I'm coming with my heart in my hand to let you know that if we're gonna get there, we have to put fear aside and say yes. So that was kind of like my open letter to him, which is why the video is us having a conversation.”
Melanie also shares that saying yes to her partner has empowered her in many ways, including motherhood and showing up for herself. Her new EP, also titled Say Yes, will be available at the top of 2025.
Check out the full interview below.
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Tasha Smith On Why Your Self-Worth Is Your Greatest Asset In Relationships
If the definition of BOOM needed a photo next to it, it better be Tasha Smith’s face.
Tasha Smith, 53, the actress known for her captivating performances and outspoken personality, has become a beloved figure in the entertainment industry. Her portrayal of the fierce and fabulous Angela in the hit movie Why Did I Get Married? is nothing short of iconic.
Beyond her role in the Tyler Perry film, Smith has established herself as a versatile actress with a range of impressive credits to her name. She has consistently delivered powerful performances in both film and television, showcasing her ability to embody complex characters and bring their stories to life.
Off-screen, Smith is equally captivating. She is known for her candid and outspoken nature, never shying away from speaking her truth. Her authenticity and willingness to address important issues have made her a role model for many.
Lucky for us, she brings that authentic energy no matter the occasion. Tasha had us saying “Amen” and “Amen again” while listening to a resurfaced interview with Donni Wiggins on theFully Transparent podcast. There, she talked about starring in Bad Boys: Ride or Die, working with Will Smith and Martin Lawrence, and being a powerhouse.
One commenter shared, “Tasha Smith needs to have her own talk show and or motivational conferences!” and we couldn’t agree more. Keep reading for some gems that stuck with us!
Tasha Smith On Self-Worth and Resilience:
“Don’t let any man burn you out or make you feel bad about yourself. Don’t take 'no' from anybody. Period. I mean it, honey. When things go wrong, don’t stay down for too long. Let the comeback be quick and big, honey. Big. We’re resilient. We are.”
On Understanding Your Value:
“You have to understand your value. Sometimes, when things don’t go right in relationships, we, as women, tend to blame ourselves. But why does that have to be the case? I remember talking to a woman who said her guy cheated on her. I told her, ‘He didn’t think he was good enough for you.’ She looked at me confused, and I said it again, ‘He cheated because he didn’t think he was good enough for you.’ That behavior has nothing to do with you—it’s about him trying to feel better about himself.”
On The Power of Boundaries:
“If we understood our value, we’d have more boundaries, and we wouldn’t accept so much. You know what I mean? Because, honestly, we create bad behavior by what we allow. Women ask, ‘Why does he keep doing that?’ Well, because you keep letting him. The apologies are working, and those apologies come with more demonic ones.”
On Breaking the Cycle of “Sorry”:
“Once you get delivered from one 'sorry,' if you keep the door open, more will come in—stronger and harder to overcome. Before you know it, you’re stuck in that 'sorry' space. If you truly understood your value, you’d be quicker to walk away.”
On Moving Forward with Self-Respect:
“For me, at this point in my life, I’m not spinning the block anymore. You can’t just keep spinning the block. You have to have self-respect, boundaries, and a sense of your own worth. If you don’t value yourself, trust and believe a man won’t value you either.”
Watch the podcast interview in full below:
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