Courtesy of Stephon
- Stephon Solomon bought his first home at 23 and has advice for first-time homebuyers.
- He put only $12,500 down to buy the house and did his own research to find the right mortgage.
- Solomon says finding the right lender and not stopping when he heard 'no' helped him close the deal.
This as-told-to essay is based on a conversation with Stephon Solomon, a 23-year-old first-time homebuyer in Philadelphia, Pennsylvania. It has been edited for length and clarity.
I'm 25 now, but I purchased my home when I was 23.
Owning a home felt like one of those things you had to do as an adult. Growing up, I saw my mother buy our home when I was around 10 years old. I remember what it was like when she got it — it was a very big moment for her.
I wanted to see what that felt like for myself. I was very determined to make it happen early on in my life as opposed to waiting until my late 30s.
But buying a home at 23 can be a little isolating. When I first started looking, I was the only one among my peers that was doing what I was doing. I couldn't really talk to them about the process; they didn't really know anything about it. When I needed support, I'd reach out to older relatives, and I also really leaned on my realtor.
I cut down on some of my spending to save, but I didn't actually have to save that much
I'm a material logistics specialist for American Airlines. At the time, I'd worked there for about three years and made around $24,000 a year. As soon as I got the job, I made a budget and started saving. I got into hobbies to keep myself occupied at home and avoid spending. I did miss out on some fun; I was still going out with my friends, just not as much as I did before.
The down payment was only $2,500, which I had to give the seller as soon as the offer was accepted. My closing costs were $10,000. A lot of people don't know that $12,500 could be all you need to buy a home. I don't ever want to make homebuying sound like it's very simple or easy, but in my situation, all I needed was $12,500, fair credit (mine was just 640 at the time), and three years of work history.
Before I could apply for a home loan, I did my own research
Before I was even able to make an offer on a home, I got familiar with the market, learning what may be too high or too low, and what to look for as far as signs of damage to a home.
After I had a good idea of what was out there and where and how to look, I looked into different mortgage loan programs that were offered and read the fine print. They all come with different requirements and contingencies, so you really have to look for what works best for you. I got a conventional loan and was able to put less money down and get a loan with my moderate credit score.
I ran into various issues with mortgage companies — some of them seemed like they were trying to find any and every reason to deny me or say I wasn't qualified. But because I had familiarized myself with the different loans and their requirements, I knew exactly what to tell them or knew what they were saying wasn't really true.
I ultimately had to go through three mortgage lenders before I found the right one
The first lender said my debt-to-income ratio was too high. I did the math, and it wasn't. I submitted the proof to show that I did in fact qualify and they were willing to move forward — but after that, who would want to go with a lender that would tell you something that's not true, or not bother to look deeper into your situation before denying you? I moved onto another one, who made a big deal out of my spending transactions because I received large Cash App deposits from friends when I'd foot the bill for a night out. So I moved on again.
The next one said my credit score was an issue — which I knew couldn't be right because I researched the loan requirements. I told them that and they did eventually call back say I was right, but I wasn't comfortable anymore because they didn't seem to know the necessary information. The fourth lender I tried turned out to be the right one for me.
What I wanted in a house was pretty straightforward, but I kept getting outbid
The most important aspect for my home-shopping was the location. I wanted to choose a house somewhere I knew I'd be comfortable spending years of my life.
I saw somewhere around 20 houses in total with my realtor. It wasn't that I was being picky — I would like a house, submit an offer, and then someone would offer a higher amount than me, even though I always bid at or over the asking price.
When it kept happening over and over, I thought to myself there's no way — maybe the sellers are looking for more money or something. But sure enough, I'd keep up with the transactions and when they were finalized (and became public record), I'd be able to confirm that I really was being outbid. Once, I actually bid the highest, but my realtor told me the seller took a lower offer because it was all cash.
When I finally found a house I liked and had an offer accepted, it took about two months to make it to closing.
Here are my biggest takeaways for other young people buying a home
1. Stay positive. When issues came up along the way, I stayed determined and told myself it didn't make sense to let anything prevent me from reaching my goal. As you can see from my experience, there are a lot of roadblocks you can run into in the homebuying process. Don't let a hangup stop you from continuing.
2. Do your homework. Do your own research on home prices, mortgage loans, and the process overall. You want to be able to make every decision with confidence, because it's a big commitment — but you may also run into some misinformation along the way, and you can combat that by knowing a thing or two on your own.
3. Lean on other support systems besides friends your age. When you're going through a time-consuming process like buying a home in your early 20s, chances are your friends won't be able to relate just yet.
4. Find a knowledgeable realtor you're comfortable with. A good realtor can help you in ways a family member or friends wouldn't be able to. Mine gave a lot of great advice and help along the way.
I'm proud to be a homeowner and I'm glad I didn't give up
Before I started this process, I thought the hardest part was going to be saving the money. It turned out to have a lot more hurdles than I'd been expecting, but now I have the pride of homeownership and a place to call my own — and my mortgage is less than the rent I'd been paying before.
Both of my parents are immigrants and basically came here with nothing — so knowing where they came from and being able to make this step in life is a good feeling.