Should We Buy Our Dream Home or Keep Renting?

do you think I can be on Pinterest with a shirt on pin me penny because I got orange so colorful so we source for my colors hey this is Jeff rose coming back at you with another edition of dollars and cents this is where I answer one of my reader questions so if you have a question guess what I want to answer it either contact me via the blog or track me down on social media and we’ll get your question answered today’s question comes from Lindsey Lindsey ass my husband and I have found our dream home but we are dealing with a hard-headed real estate agent who currently owns it those dang real estate agents they’re so hard-headed she has it on the hidden market but is too high for us at the time our house is currently on the market but we were having cold feet and debating taking it off do you recommend us socking away more of our mortgage we could pay an extra $400 a month and pay off in six years while we’re waiting on her to hopefully reconsider on her dream home or word so we try to sell and see what happens which would possibly send us into renting and saving that way I hope I was clear enough on my question don’t worry Lindsey you’re good I got you we don’t want to make a huge mistake hope to hear from you soon thanks so much for the awesome site thanks for the compliment Lindsey I appreciate it you go go there’s a lot going on with this question so let’s kind of break it down into chunks first let’s talk about buying this dream home now if you ask someone prior to 2008 getting the American Dream was getting your dream home finding the house of your dreams having the white picket fence and having the big living room the big TV the big backyard where you played you’re dogging your kids but then 2008 came along guess what we have the financial crisis the financial home crisis so all these people are buying these home to the extreme the large values and now they’re underwater and they’re gonna be stuck there for probably the rest of their lives unless I do a short sale so getting that dream home is not so much a dream as it used to be so don’t put yourself in a financial bind by buying your dream home prematurely now I like the fact that you’re considering selling your home possibly renting you know if that’s something that you feel that you can do with a family I know with us having our own house and then maybe downsizing and then renting especially with two young boys which I forgot to mention the question so that’s something that you can do comfortably and allow you save more money to buy that dream home then sure so be it but don’t ruin your financial livelihood just by sacrificing you and your family and your kids by buying this dream home music you know what maybe in a year or two it won’t be your dream home things change so the other question regarding should you pay an extra of $400 a month on your mortgage or should you save here’s something I would look at I’m not sure what your mortgage rate is but the one thing I realize and this really comes from my CPA and it comes from a lot of people cash is king cash is going to give you so much leverage if you want to put money down for a Dream Home or at least to show the bank that you have plenty of cash on hand so paying down that mortgage which depending on when you finance that mortgage maybe you’re around 5% 4% you know right now you’re down the point where you’re just paying off more mortgage not as much interest so I’d rather you put more money in savings have that cash on hand to help you buy that dream home later on there are a lot of factors that go into this question so it’s not as simple to answer but least you can see some of the logic that can go behind addressing some of the different directions that you can go so I hope that answer helps satisfy what you’re looking for and if you’re another good financial sense reader and you want to be featured on dollars and cents let me know because I want to answer your question I do pretty please give me a question I got an answer the answer is coming out everywhere look through my pockets okay we’ll see you next time this is Jeff rose take care