How much money you actually need to buy a home next year. Down payment, closing costs, reserves, and how much house you can afford based on your income. The speaker walks through the numbers that matter.
Is this an area that you want to stay in for seven to 10 years? If it's not, then I wouldn't buy a home because we fail to think about all the expenses. The utilities, the repairs, all those expenses are cost of maintaining them. All those costs compared to if I rent it and invest it. I don't want your housing costs, rent or otherwise, to exceed 35%. So here's the deal. Minimum seven years in the home down payment between 5 and 20% in a high yield savings account. Make sure that you have a reserve or whatever you were going to do post purchase of the home in place in cash. And then make sure that your total housing costs do not exceed 35% of your income. That's what I would do.
