Is it better to buy a cheap house first?
Higher Cost Than Renting
Although starter homes are cheaper than larger homes, they still cost more than many rentals.
You might be better off continuing to rent and investing the extra money so you can put it toward your forever house later on.
What to do when you can’t afford to buy a home?
Find expert agents to help you buy your home.
- Choose a 15-year fixed-rate conventional loan.
- Be sure your monthly mortgage payment is no more than 25% of your take-home pay.
- Put at least 10% down—but 20% is even better!
- Pay for closing costs and moving expenses with cash.
Is it a good idea to buy a house right now?
Buying a house is a good way to start building financial security. As you pay down the mortgage, you build up home equity, which is a valuable financial resource. Mortgage rates are low right now, so if you think you’re ready to buy a home, it’s a good time to make the move.
Does it make sense to buy the most expensive house you can afford?
Re: Buying the most expensive house you can afford
Most likely (but not guaranteed), the payments will become more affordable as your career and salary progress. I’d also recommend a fixed rate 15 or 30 year mortgage so you’ll know the most you’ll have to pay for your mortgage each month.