My husband and I would like to buy our first home this year but we really have no idea where to start. I've heard that no more than 25% of your income should go to a mortgage. For us, that would be around $1,000 per month. We make approximately $4,200 per month, so approximately a $200,000 home which can get you something nice around here.
We don't understand how property tax works. Say property tax is $3,000 per year on that $200,000 house. Would that mean that we would essentially then be paying $1,250 per month?
Then utilities - should that figure into the 25%? Say you have a 1,500 sqft house, how much would you expect to pay in utilities per month?
We plan on putting 10-20% down. We would like to get out of our apartment and start gaining equity…
We are just worried that we won't be able to afford it. If one of us loses our job, etc. How will this affect us if we have a baby in several years, etc. Any advice would be greatly appreciated, thanks!
Added (1). P.S. I should mention we are debt free. Our only expenses are phone, car insurance, food, etc. Approximately $850 per month in these misc. Expenses.
Read more: How much house can we really afford?
