800 K house for my income? (daycare, jumbo loan, purchase)

[ToyVW55]

I'd probably only take on that sort of mortgage with your situation if the house was in such a perfect commuting distance to your office that it provides you with your "quality" in that area of your life.

[NC211]

Back of the envelope math on what you posted, against you base salary only, you'd probably be in the low 40%'s on the debt to income ratio for all your obligations (including the mortgage), which is fine. There are two ratios lenders look at for a conventional mortgage - front ratio of a mortgage payment divided by your income (28%), and then the back ratio that adds on your other monthly obligations (typically around 36%). These ratios are somewhat fluid, and I might have them reversed, but they've been standard for the industry for many many many years to size a borrower's ability to carry a mortgage.

Once the tuition drops, you'll be in even greater shape. I've had that ratio (and higher) for many years in my life starting out, even with two kids. It's definitely doable and you'd likely find that most are in that range anyway to be honest.

Now, I'd likely skip the new Audi SUV until the tuition is gone and if your wife goes back to work. But there's nothing wrong with a used Highlander either. We still have ours since new in 2013 with no plans to replace it soon. I bought it when my ratio was higher than yours, but is now lower (I'm a bit older than you).

You're starting your family. Risks are involved in everything you do. However, given the dilution of the dollar now with the trillions coming off the printing press now for COVID support - that $800k home is likely going to go up pretty quickly in price. I say if you're able and willing, now is the time to buy that family home and sit tight for a while. Especially given where interest rates are now too!

Heck, I just refinanced my current home this week. It now costs me the same on a monthly basis as my last house in Brambleton did just 5 years ago, yet this one is much larger and the mortgage is about $100k more than that one was (bought that one in 2011, sold in 2015 for 23% more than what I paid for it).

[piperdiva]

You also need to consider how much your property tax is going to be. And a bonus is just that; a bonus. I wouldn't count on it as guaranteed income.

[phoebesmom]

No, I would not do it, with so many unknowns, such as children's needs and wife's job situation down the road.

Too expensive for your salary, in my opinion.

[WorldKlas]

Is you job going to be impacted with the economy struggling?

Real estate is predicted to take a downward turn in the near future......

I think you can afford it but if the job goes away it may be difficult to sell the house without taking a loss.

[sonnymarkjiz]

You'll be fine. I always like a cushion and would go for something that's 700K so I have a bit more of a cushion/emergency fund in case something happens. But that's just me.

[elias9193]

After paying all your expenses if you can’t save at least 10% of your gross income I wouldn’t do it.

[HokieFan]

Originally Posted by komson333

Hi!
Can I afford $780,000 house in my situation?
1) 20% down payment 2)my credit score - 800, wife's credit score - 750. Title will be on both of us, morgage only on me.
3) 31 years old
4) a stable job at a large corporation that I started 6 months ago: $159k base salary+10% bonus+$15k special bonus+$16k in stock for next 4 years (vested annually); good health insurance
5) $10k car loan
6) no other debt
7) pregnant wife (1 child coming soon)
8) wife is a university student and still has 2 more years; $16k in annual tuition. It is very plausible she will get at least $60k job after graduation

Thanks

You would be better off to speak with a mortgage lender about affordability.

There are a lot of other things that you should consider, and with this limited information it's difficult for us to assist you with those. Such as, if you're moving to a significantly larger home - increased cost of utilities, maintenance & upkeep, repairs, cost to furnish a larger home, etc. etc. Are those bonuses guaranteed?

And long term planning:

Are you also contributing to your retirement fund, college savings fund for the kid, emergency savings, do you and your wife have life insurance, and as someone else mentioned - when your wife goes to work, consider daycare costs, commuting costs for her (will you need an additional vehicle), etc. etc.?

You do not have to answer these questions - I'm just posing some things that you need to take into consideration when thinking about buying a home.

Personally, I would not feel comfortable with an approximately $3700 payment on your salary alone. I'd want to go for a less expensive house to be able to save more and have more of a discretionary spending budget.

If your current living situation is tolerable, my suggestion is to wait until your wife graduates and gets a job.

[Flamingo13]

It was a new poster - remains to be seen if there will ever be more than 1 post

[Finallystoppedlurking]

Originally Posted by lchoro

I would wait till your wife gets a job so you can look for a place close to her work.

hes gotta account at least 1700-2500 for childcare...