Just Because You Can Afford the Down Payment…Doesn’t Mean You Should Buy A House (Part I)
I would like to preface this with saying that while I am not a financial advisor, I do consider myself pretty responsible and knowledgeable when it comes to money, budgeting, maintaining good credit, etc.
I wanted to include other great ways to use the money you’ve been saving in this post. Unfortunately it made the post 20 minutes long so I thought it would be less cumbersome on the reader to separate it into two parts.
For Part II, you can read the post here.
I was recently on Instagram when a particular post came up on my feed. It mentioned how if a couple could start saving $578 a week NOW (the original post was on June 30th, 2023), then they could afford a down payment on a house by the end of the year.
Below is a picture of the post in question and the beginning of my comment.
As you can see, the post states the following.
If you and your partner can save $289 a week Starting today, you will have $15,000 by the end of the 2023, which is enough for a down payment on a $500,000 home with a Conventional loan.
In the caption along with the post, OP says the following.
*calculations not including closing cost*
*buyers need a credit score of at least 620 and DTI of at most 45% to qualify for 3% down payment*
First, I will say that OP is technically right. With the above information, you can technically qualify for the 3% down payment, but the question should not be can you, but should you.
I believe that in the above case, you probably should not. Here’s why.