Financing

Don’t But Too Much House

The best advice possible for ANY home buyer is to buy the house that makes sense financially – not the house that is going to overwhelm you down the road. When it comes to guiding first time home buyers passed potential mistakes, this quote is good advice:

Don’t stretch yourself too much with a mortgage. Buy within your means… it’s not worth the sleepless nights.
~ Sarah Beeny

Mortgage Statistics

According to the US Census, only 12.3% of homes valued between $150,000-$199,999 are free of a mortgage. Many of these homes are paid for over the course of many years. It is a small percentage of buyers that have the means to purchase a home with cash. Even if you can’t pay cash for your home, plan to put down as much of a down payment as possible.

Pensacola Mortgage Advice

I recommend the following framework for your loan:

- Buy a home with no less than a 10% down payment (20% down is ideal)
- Opt for a 15-year fixed-rate mortgage. 30-year mortgages are standard, but result in a much greater overall expense to own your home.
- Aim for your monthly payment to be 25% of your monthly take-home pay.