First time home buyer, married, no kids, no debt, MCOL area, currently under contract for a home in our ideal location for $423,000 ($12,000 over appraisal, fairly expensive for the immediate area). Not the perfect house but pretty close, and is in very good condition.
I make $145,000 annually, which will be going up in the next few months. But for now take home after retirement is $6100/mo
Wife makes $48,000, but is in a less stable field that she may or may not stay in long term. For now take home after retirement is $2400/mo, could go down to maybe $1000/mo (maybe $0) next year
Mortgage (PITI) is $2230, so we’re looking anywhere between 26%-37% of our take home pay going to the house every month depending on her job
This all sounds fine on paper, but I am getting major cold feet over the fear of being house poor. We’ve been paying about $800 less in rent for the past 5 years, and that alone feels completely daunting.
The house is totally renovated and would need very little work it seems, but my gut is telling me to get something cheaper (300k or less) in a less ideal neighborhood that we can afford on my pay alone, and just renovate over time. I tend to be frugal and am very uncomfortable with debt, so I need you folks to tell me if I’m being completely unreasonable or not.