“A lot of people are allowed to buy homes that shouldn’t buy homes,” said Pete the Planner, a local financial expert.
Rent or buy?
That’s the question most first-time buyers struggle with.
27-year-old Kassidy Galbraith is no different.
“It’s going to be a great bachelorette pad,” said Kassidy.
Currently, Kassidy lives in an apartment in downtown Indy.
Her rent is about 40% of her monthly income.
One of her motivations for buying a home is lowering her housing costs.
“You pay a lot in rent. I’m ready to save some money and start making some better financial decisions,” said Kassidy.
Fox 59 Financial expert Pete the Planner sat down with Kassidy to see if she’s as ready as she thinks to buy a home.
Pete says buying a house is essentially a numbers game:
- Can you find a home you like with a mortgage payment that’s no more than 25% of your monthly take-home pay?
- Do you have enough saved for a 10% down payment?
- Do you plan on living in the house for at least 5 years?
Kassidy immediately met two of Pete’s three requirements, and she’s now working on the third.
“The good news about Kassidy is she’s ready! In about six months she’ll be perfect. She just needs to get that savings up,” said Pete.
Click below for Pete the Planner's "Home Purchase Checklist"