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Question for the Money Doctors

Question submitted on Dec 15, 2012.

Question

I am a single mother that hasnt been able to be consistant with working over the past 4 yrs for a myriad of reasons. I am pushing foward to improve my finances. I have set a goal of saving 15k by next September in order to put down on a house. Should I rent first or go foward with attempting to purchase

Answer

Hi. Right now, in many areas of the country, it is cheaper to buy a house than to rent. That said, conventional mortgage standards are more rigorous and some banks will require you to put 10% to 20% down on a mortgage. My recommendation is to speak to a reputable mortgage person to find out what size mortgage you qualify for. That meeting (which should be complimentary) should inform you of any required down payment and will narrow your decision to whether you can rent or buy now.


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