Personal Finance

I've been a homeowner for 4 years. Here's what I wish I would've known first

Christy Bieber

Published: April 30, 2025 11:11 am

Buying a home is a huge life milestone, and it can also help set you up for financial success since you build equity and each housing payment helps you acquire a valuable asset. That’s a contributing factor that helps to explain why the median net worth of a homeowner is around 40 times the median net worth of a renter.

However, while becoming a property owner can have a very positive impact on your finances, you also need to go into it with both eyes open.

One Reddit user started a thread recently discussing things he wishes he had known before he made his purchase. He has owned his home for four years now, so he’s gotten a little more knowledgeable and wanted to share his wisdom with others who may be thinking about pulling the trigger on homeownership. 

3 things a homeowner wishes he’d known before buying

The Redditor had many pieces of advice he wished he’d heard before buying his house, but here are a few that may be worth taking a closer look at.

1. Home equity loans or lines of credit can be an affordable way to borrow: The original poster (OP) explained that you can usually get a better rate with a home equity loan or line of credit than with a personal loan or credit card. While this is, indeed, true, it is also a bad idea in most cases. There can be higher closing costs associated with home equity loans, and since your house guarantees the debt, there’s a serious foreclosure risk.  If you are 100% confident you can pay the debt and are doing something very important with the money, then it can make sense to borrow against equity– but just be sure to understand the risks before moving forward.  
2. You can save on home insurance by shopping around: You’re required to purchase homeowner’s insurance if you buy a property with a mortgage. And even if you aren’t required to buy it, you need to have homeowner’s insurance to protect your property from disasters and to protect yourself from liability. Since you don’t want to overpay, you should get quotes on a new policy at least once a year to ensure your premiums are as affordable as possible. Bundling home and auto insurance can also help you save, as many insurers reward you with multi-policy discounts for buying several types of coverage.
3. You should consult with a financial advisor: Finally, the OP advised that you work with a financial advisor. An advisor can help you make sure you’re buying an affordable house, making the right choices with your mortgage, and working toward your other financial goals even as you move forward with your home purchase. 

The original poster’s advice here can be helpful if you are buying a home of your own for the first time, or if you already own one, as his tips can help you save on costs and avoid major financial mistakes that you could come to regret. 

Buying a home affects your finances in big ways

The reality is that your purchase of a home is going to affect just about every aspect of your financial life.  You don’t want to overspend and devote too much of your income to the property, or you won’t be able to save — plus you’ll risk foreclosure if something goes wrong. You also want to get the right house and keep your costs down on expenses like insurance once you have moved in. 

Before you make important choices about one of the biggest purchases of your life, reaching out to a financial advisor can be invaluable, just as the OP suggested. With an advisor to help you see how your home will fit into the big picture, you can make choices that set you on the path toward growing the high net worth that so many homeowners enjoy.