Buying a home is one of my dream goals. My husband and I have been working towards making that dream a reality. We have some money saved but not as much as we could have at this point. The housing market is starting to go up which can only mean that prices are going to increase. That is not something I am looking forward to, and these are the reasons why.
Larger down payment needed
Our original goal was to have $20,000 put away for a down payment. The houses we are looking to purchase range from $60,000 to $90,000 and that would put us at 20-33% paid off going into a mortgage. If the market continues to go up, our initial payment will have to increase as well, or we would have to find a less expensive home.
Settle for a small house
We are not looking for something extravagant, but we do want a nice house. The area we are looking at has three and four bedroom houses under $100,000. We would like to stay way under that if we can, but as the market increases, that possibility decreases. A two bedroom house would be sufficient for our family, but it is not something I really want.
Right now there are plenty of available houses on the market. I don't want to be limited in my choices when buying. If the housing market increases, the abundance of available homes will dwindle. The area we want to buy in is popular among younger couples with families. As more couples get approved for loans and move in, the lesser chance we have of getting a place close to the school in the area. I don't want to have to be stuck with a house I really didn't want because it is the only one left.
It would be beneficial to my family if the housing market stayed in favor of the buyers, rather than the sellers. While I know it is better for the economy for the housing market to increase, I am hoping it will hold off until we close on a house that I want. I would like to keep my down payment in the range of 20-33%, but that will only be realistic if things stay virtually the same as they are now.
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