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It’s Friday 🙌🏾 Any big Labor Day plans?
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OP I worked my butt off to save up a down payment and didn't even realize there are so many programs out there that will help you as a first time homebuyer and sometimes you don't even need a down payment. I didn't take a class I think I just got lucky with a really good realtor who walked me through each and every step.
Bowl Leader
You don’t need to put down 20%. Your first home is most likely not your forever home. Dont over invest in fixing it up. Only invest what you can recieve back in you refund over the next two years. Look at county and city taxes as a factor. DONT DEAL WITH HOA AND CONDO FEES!!! and if you decide to not listen to that advice, find a way to understand the financials or you could end up paying a crap ton for special assessments.
Bowl Leader
Also, not to mention you HOA and condo fee could fluctuate. Get an inspection even if you don’t do FHA. Especially when it’s not a sellers market
Start smaller! Since this is your first home, it is unlikely to be your last. All my friends went for broke with their houses and have mortgage payments 3-5 times higher than mine because they wanted the nicest house they could get based on their salaries.
You don’t have to get a dump, but consider which things you want to prioritize your money. I wanted additional retirement contributions and a new car more than I wanted the nicest house I could afford.
I also did not put 20% down, because I was barely a year out of law school and I simply didn’t have it. Consider if you want more in that rainy day fund than the full 20%. Look at the PMI rates and see if you can counter that with interest on HYSA or some other savings mechanism where you keep better control of your money. Also, when you’re a homeowner, I swear things break more than when you’re a renter. Be prepared for that.
Overall, this is very very exciting! Congratulations to you on making moves to find this piece of stability in life!