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Old 04-25-2008, 05:49 AM
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disneysteve disneysteve is offline
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Your PITI would be right at 36% of your take-home which is the upper limit recommended. Obviously, the increase in salary would help bring that ratio down, but what happens if the raise doesn't occur or you don't stay in that job? What kind of savings cushion do you have? Could you continue to afford everything if you found yourself out of work for a few months within a year of buying the house? Have you reviewed 6 months of utility bills for the house to know what those expenses will run (and can you afford them)? Do you have adequate savings for car repairs, home repairs, medical bills, etc.?

I think you can probably swing this but it may be rather tight early on until your income increases. You need to be willing to live really lean and maintain an adequate EF. Owning is a lot more costly than renting. As long as you feel you can afford all the costs that come with owning, now is probably a good time to be buying.

And I'm hoping that mortgage is a 30-year fixed rate.
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