Dave Says: Smaller Down Payment?

Dear Dave,

I’m 24-years old, and just got married two months ago. We make $80,000 a year, have our emergency fund and no debt, plus we’ve saved up for a 15 percent down payment on a house. I know you suggest 20 percent, but is 15 percent okay?

- Tony

Dear Tony,

I don’t have a lot of issues with 15 percent instead of 20 percent. You’ll probably end up having to pay private mortgage insurance, but it sounds like you guys are in good enough shape financially to handle things.

However, I generally recommend that couples wait until they’ve been married at least a year before buying a home. Buying a house is a huge decision. That’s why I think it’s smart to wait and get to know each other even better before making a decision of this magnitude. Plus, you need to figure out just how close you want to live to your mother-in-law!

Seriously, take your time and don’t rush things. There will still be great deals on the market in a year or so, and you’ll be able to save more money, too!

- Dave