Mark,

A small change in a rate for a consumer that is on a tight budget can change their payment significantly. It all depends on the buyers definition of significant, not yours or mine.

Good Morning Lori,
Taking the plunge to a bad location makes zero sense in this current market. There is speculation that the interest rates are going to drop back down in the near future. When you say East Coast Resort area are you including Cape Cod, or are you looking farther north? Decent vacation properties can be had here within 1.5 miles to major beaches for $225k and above. Look to where there is scarcity of land or property. If you are looking in a lower price range like this, a small move in your percentage rate will not change your monthly obligation significantly. Taking your time will ensure that you get everything that you are looking for.

If you have not found a place you are dying to buy than definitely hold tight and keep looking .. Dont jump in until you have found the perfect place. it is never good to buy under feelings of pressure. Inventory will only increase over the next year, especially around corporate bonus time (they are expected to be at record lows) - Jan/Feb/March.

Good luck!

I would not be worried about the VA changing it's guidelines and not being able to get a loan. Good bad or indifferent the VA guidelines are virtually unchanged in the 16 years I have been lending.

Rates are your bigger concern 5.5% is a great rate. Rates move up to 7%, which is not a bad rate and not an unrealistic number, but could push properties a little further from your reach. Having said that I would never buy in an area I felt was in a "bad location".

Hi Lori,
If you are having 2nd thoughts because of condition ( did you have a home inspection done? or is this your own conclusion?) and a bad location - the location will not get better; the condition can with improvements.
I would have your realtor keep looking - this time of year in Provincetown the prices tend to start falling on the places that didn't sell over the winter, is my experience. Perhaps locate another property that you like, a bit higher than you can afford and try to negotiate the price to fit your parameters. Sellers who want to sell are also looking at the market, fearing a hike in interest rates - higher rates = less buyers who can purchase.
Winter is coming, and the sellers know that too.
Good luck!

My advice is to keep searching. The home inventory is very high on the cape right now andf you should really keep looking. Also, be very careful not to over extend yourself or you will end up in the same situation as so many have done before. If you buy now and start establishing yourself in the home ownership business, who's to say that in a few years you might be able to move up to a bigger home.
I would still be careful that you still buy a home you feel can be sold easily in the future. Not something that is just there. Consult with your realtor about resale potential, etc. before you buy.
If you don't have a realtor and want to talk more please let me know.

If the prices in your preferred area are truly just " a bit" out of your range, a qualified real estate professional may be able to negotiate on your behalf to get the price where you might be comfortable? Of course, that depends on your idea of "a bit". But, given current market conditions, you may have a shot. Sounds like time is your shortest commodity right now if you're already locked in your loan rate, but Sellers are pretty negotiable right now. If condition is a serious concern for you on choice #1, consider the amount you may have to invest into the place to bring it up to snuff. Is this difference less or more than the difference of the homes in the area you prefer? Talk to your real estate pro...you should be able to have this conversation with him or her and come up with a solution that you will be happy with. Good luck!