conversation: User (chaosfourever): "So for some details. Want to finally buy a house this fall. Price range is 200k to 250k. We will have about 52K saved by then. So lets say it is 250k and we put 20% down. It cutting it too close or can I find a place that allows 15%. I dont want to be paying PMI. \nFor finances we make about 95K a year. \nRent and insurance $1000\nCar payment and insurance $450\nStudent loans I still owe about 70k.\nFood and gas and general bills is about $650 a month.\nWe combined probably put about $1800 in savings each month.\nNew house payment could come to about $1350 a month. \n\nNow before you say pay off the student loans first. We have been renting for years and finally saved up to get out of renting. Renting is killing us slowly. Also the market keeps going up and houses are only getting more expensive so now feel like the time. Paying off loans would mean another 3-5 years of renting which we are not going to do. Jobs are finally stable and doing good. \nSo suggestions and such?"
  Self: "You won't be able to afford the house, honestly speaking. You have to either get a cheaper house 200k max, or you have to wait to save more. \n\nThere are no other magic options, you frankly don't have the money available to afford a $250k house with 20% downpayment. 2k will not be enough to cover your closing costs, your inspection, your mandatory insurance which is sometimes paid upfront for the full year, or your first month of mortgage. \n\nYou also should have enough in emergency fund to cover you in case something goes wrong right when you buy the house. 3 months of emergency fund should be roughly 9k with your expenses. \n\nSo you realistically need more like 70k saved before you can safely purchase your 250k house. \n\nOn the other hand, if you purchase 200k house, you are looking a bit more safe. 40k in dp leaves 12k to split between closing costs and having cash on hand for emergencies. "
  MrMoneyWhale (MrMoneyWhale): "From what I'm experiencing right now, closing costs are roughly 7-10% of the purchase price, which was a huge surprise when we initially started budgeting to buy a house. "
  