I’m in a mad frenzy to save money and buy a home by late next fall. That gives me a little more than a year (14 – 16 months) to save up enough cash for a down payment. However, in Southern California, homes are crazy expensive! I’ve budgeted a reasonable amount for a “starter” home and am hoping to snag one for under $410,000.
It’s no secret that I’ve been planning on buying a house in the “near future.” Unfortunately, that near future was further away than I had imagined. Yet, now I’m realistically looking at purchasing a house in 16-18 months from now – hey, at least I have a time frame instead of a hazy vision of the “future.”
Living in Southern California where the starter home prices average in the $400,000’s makes it difficult to ever imagine owning a traditional 3 or 4-bedroom home with a little bit of land, especially on an average income. So, renting has been the way of life for me.
If you are getting ready to purchase a new home, one of the very first questions you will be asked by your Loan Officer when you speak to them for the first time is: How much of a monthly house payment do you think you can afford?
In a city where the “average” starter home begins at $350,000, choosing the best house boils down to location. However, after the location is sorted out, the next question is do I go with a better floor plan or more square feet?