Good points overall, but I'd argue that waiting too long after bankruptcy to buy can also backfire. I've had clients who waited, thinking their credit would dramatically improve, only to find home prices and interest rates climbing faster than their credit scores. Sometimes getting into the market sooner—even with PMI or slightly higher rates—can actually save money in the long run. It's definitely a balancing act between liquidity and timing...but waiting isn't always the safer bet.
"Sometimes getting into the market sooner—even with PMI or slightly higher rates—can actually save money in the long run."
Exactly this. I've seen folks wait out the "perfect" scenario only to get priced out later. Instead, I'd suggest a clear step-by-step approach:
1. Check your current credit score—know exactly where you stand.
2. Talk to a lender to see what kind of rate and PMI you'd realistically face today.
3. Compare monthly payments now vs. potential future scenarios (factoring in rising prices/rates).
4. Run the numbers: if buying now—even with PMI—makes sense financially, don't overthink it.
Timing matters, but clarity matters more.
Solid advice here, especially the point about clarity over timing. I've seen firsthand how waiting for that "perfect moment" can backfire. A few years ago, a friend of mine kept holding off on buying because he wanted to avoid PMI at all costs. He figured he'd save more by waiting and putting down a bigger deposit later. But while he waited, home prices in our area shot up significantly (like 20% in just a year or two). Suddenly, even with a bigger down payment, he was looking at higher monthly payments than if he'd bought earlier with PMI.
I think your step-by-step approach is spot-on. Knowing your exact credit situation and talking directly to a lender can clear up so many unknowns. People often assume PMI is this huge financial burden, but when you crunch the numbers, it sometimes ends up being pretty manageable—especially if you factor in potential appreciation and equity gain over time.
One thing I'd add though: consider your personal circumstances too. If you're planning to stay in the home long-term (say 7-10 years or more), paying PMI for a few years upfront might be totally worth it. But if you're thinking shorter term, that math changes quite a bit.
Overall though, your point about running the numbers is key. Nothing beats sitting down and doing some honest math based on real numbers—not guesses or assumptions. It's easy to get caught up worrying about interest rates or PMI fees without actually seeing what they look like on paper.
Anyway, good stuff—it's refreshing to see practical advice instead of just doom-and-gloom predictions or overly optimistic hype.
Totally agree with this. PMI isn't always the monster people make it out to be. When I bought my place, I was dead set against paying PMI too—felt like throwing money away. But after crunching numbers (and a reality check from my lender), I realized waiting would've cost me way more in rising prices and rent. Sometimes it's better to bite the bullet early than chase that elusive "perfect" scenario...which rarely shows up anyway, lol.
"Sometimes it's better to bite the bullet early than chase that elusive 'perfect' scenario...which rarely shows up anyway, lol."
Yeah, learned this the hard way myself. I waited an extra year trying to dodge PMI, and prices jumped way more than what I'd have paid in insurance. Hindsight's 20/20, right?
