Reply to 670 score, 16k, want to borrow 700k

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[quote=Anonymous]The thing that first-time home buyers sometimes miss about buying a house is that it's a short-term money drain.  Yes, long-term, home ownership often makes more financial sense than renting.  But that's only after at least 5-10 years, when the home has gained value, the mortgage payments start putting more than a trivial amount of money into principal instead of interest, and rent would have increased.  Short term, owning a house is expensive.  It's not just the down payment and closing costs (although those are significant, and more than OP has saved right now), it's maintenance, insurance, property taxes, and a "rainy day" fund for when things in the house need fixing or replacing.

So while buying a house is a worthy goal and absolutely makes long-term sense, it's a really bad idea for someone who has cash flow problems and very little money saved up.

OP, if you want to buy a home, the best advice I can offer is to save some money and get your finances (and spending) straightened out.  Cut your expenses and save as much as you can with a goal of buying a house in one or two years.  That's your best path to home ownership.[/quote]

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