Using Rent to Own to Purchase your Dream Home Part 2
Reality can basically burst your dream home bubbles! The size of my dream house was unavailable with my income alone. My dream home would be priced around $400 – 500K. I would possibly be able to afford my dream home by getting a 95% to 100% mortgage, with a 40 year term. I would have to work hard to make the payments, sink all of my savings in the down payment, closing costs, inspection, real estate agent fee, etc etc etc. I would have to hope and pray that the interest rates stay low for the term so I could continue with the mortgage payments. A scary scenario would be that what the bank approves may not be the amount I need to buy my dream home. So my lovely 3-4 bedroom, 2-3 bathroom, may end up being a 1 bedroom shack (see above picture). My dream home was truly only going to be a dream.
My biggest question was ‘What do I do now?’ So thinking on how to get close to my dream of owning a home that I like ( not what I can afford or be approved for, but what I like and want), I have some options – marrying rich (nope) sharing a home with a roommate (hopefully their checklist is close or similar to mine – maybe they’ll like bay windows?) working another 5 years to save for a bigger down payment and hopefully be approved for a larger amount from the bank. All these options aren’t necessarily good options, but what else could I do?
There must be an answer to my problem…..