I'm 22 and been saving since I got my full time job 4 years ago and I make $40k a year before taxes. I want to buy a home soon. What should I consider when buying a home? I heard location is the number one thing to consider when buying a home. Houses are cheap where I live.
Should I buy a cheaper $45k 2 bedroom 1 bathroom house or a $95k 3 bedroom 1-2 bathroom house? If I buy a cheaper house I can get a 15 year fixed mortgage and make extra payments and can get it paid off around 5 years. If I get a $90k house I would get a 30 year fixed mortgage and can get it paid off in around 12 years. I'm guessing the bank will let me qualify for around a $110k house but 90k is the highest I'm comfortable buying.
Any other tips or experiences from home owners is appreciated.
Added (1). I have $35k in the bank and willing to put 20% or up to $20k for down payment.
Added (2). Yep, The paragraph above is calculated WITH taxes and home and owners insurance in the mortgage.
Read more: Top things to consider when buying a house?
