Investing in my own personal home. What would you do?

[Kevin Nguyen]

For the past couple of weeks I have been browsing this site and I decided I want to pursue REI. My first decision I need to make is that I need to buy a home for my wife and I. We would like to find a house to settle into and start a family soon; hopefully by the end of the year.

I thought about house hacking but my wife doesn't want to start a family in a duplex/triplex. We have 2 options that we are deciding on. Wife wants a new house that's about 2300 per month PITI however the initial cost is down-payment only. Closing costs and all appliances and shades are already in the house. I would live here for 10+ years.

I am leaning towards buying a cheaper and smaller house though, that'll cost me about 1700 per month in PITI. It requires a bit more money up front however I'd save more in the long-run due to the lower payment. It is small but tolerable for 5-8 years with a young family.

Thoughts? What route would you take? I want to make sure I set myself up good so I can start REI.