House Purchase Advice

[Steve85]

And perhaps it goes without saying, but, be careful about "approved for" and afford. Only tell the realtor what you can afford. If you are approved for 350K but can only afford 250K, your realtor will take you to 325K houses all day long trying to push your budget for the increased commission. Home buying is emotional and it is easy to convince yourself that you can afford it. They know this. If you don't think it's emotional, look how many people plopped down several hundred thousand after spending probably less than an hour in the house they bought.

And I don't know if you're buying with someone or not, but if I had to do it again, I would buy a house we could afford on one income or come damn near close. Oh, and if you are planning to buy "with someone" and kids are in the near future (5-7yrs) you will spend at least 1000/month on daycare if you both have to work to afford the house. I only mention that because it's almost like buying a second house, a huge expense that can't be traded in for a lesser model (i.e.car payment).

I guess my point is, if you start stretching now, it can be hard to catch up as life moves along. This is one of those purchases that easily becomes emotional and isn't necessarily easily undone. Think long and hard about what you want/need in a house vs life.