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 have $35k in the bank and willing to put 20% or up to $20k for down payment on a house, 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. Both calculations include property taxes and homeowners insurance. I'm guessing the bank will let me qualify for around a $110k house but 90k is the highest I'm comfortable buying. Credit score is 765.
Any other tips or experiences from home owners is appreciated.
Read more: Top things to consider when buying a house? - 1
