If you really want to own your own house and are in a state where your credit is good and you have a steady job, you might be able to buy a house even if you do not have a lot of money saved up. The question is whether this is a good idea or if it would be better to wait until you have more money saved up before you buy one. As you think about this decision, here are some pros and cons with each option.
Pros and cons of buying a house now
Buying a house right now with the money you have offers a few benefits, and one of them is that you can stop renting faster. If you are tired of throwing your money away to rent and are ready to become a homeowner, there is no reason to wait any longer to buy a house. When you buy a house now, you can start investing in it and build equity in the home, and this is a great investment. Secondly, if the housing market is in a state that is beneficial to buyers, you might be able to get a great deal on the house you choose.
Buying a house now also has a couple of downsides, and the main one is that you may have to pay more for your mortgage payments. If you borrow more money, your payments will be higher. If you have to pay for private mortgage insurance with your loan, you will have an extra payment to make each month. These are really the only drawbacks to buying a house with less money to use as the down payment.
Pros and cons of buying a house later on when you have more money saved up
If you wait to buy a house until you have more money in the bank, you might qualify for a lower interest rate on your loan, and your mortgage payments would be less. This is the key advantage to waiting to buy a house, but there are also disadvantages to waiting. The main one is that you will have to continue paying rent until you make a purchase of a house. This means that you will be throwing more money away while you wait, and this does not make a lot of sense in most cases.
If you are still not sure whether you should buy a house now or wait, you could talk to a Realtor to learn more about loans and homes for sale.Share