Since the election I’ve kinda buried my head in the sand to try and stay sane, so I’m not sure what projections are looking like for the real estate market. Unfortunately I need to move pretty ASAP and I’m having the worst luck with rentals.
So, anyone have any advice or an idea of the outlook in the next few months?
You can test drive a payment level while watching the market. Pick the price bracket that you think might be your max and calculate the payment. Then set up an automatic recurring transfer from your checking to a savings account for the amount of the theoretical house payement with escrow - current rent. This will help you see if you can manage a higher payment or if you will feel too house poor. Those savings transfers can be earmarked for the downpayment too.
When figuring out how much of a downpayment you can afford, don’t forget to reserve money for closing costs which can be thousands of dollars. You will also need to reserve some emergency funds, and expect to buy a significant number of tools in the first few years. Yard care tools, ladders, etc. really add up.
If you look at places that need a little work, do your best to arrange to have all that work done before you move in. For example I wish we had our floors refinished before we moved in. To do that now would be a lot like moving twice.