Another update on the house hunt - I've got the search down to two homes (1 is front runner by far). Paperwork for loan approval is all in at the bank, and if I am given the green light it might be offer time.
I sort of bumped my budget up a bit a took a look at a home that is out of this world nice compared to the others. Certainly worth the extra little bit.
I've already set me own "top dollar" price that I would pay for the home, not that they will take it, but I know myself too well and if I don't draw a line in the sand I'll end up paying more than asking... seeing as I have moved the budget up I am just curious as to what percentage of your income you are putting towards your PITI???
The frontrunner and my top-dollar price with 12% down (what I would have based off of the top dollar price) would give me a PITI of $850/mo.
That $850/mo. is 30% of my monthly income (after taxes and 401k reduction).
*19% of income before taxes - not sure which number to use*
Does that seem resonable? My only other debt is 14k in student loans (~$250/mo.)
Total monthly debt (PITI and School Loans) = 40% of income (after 401k and taxes) seems pretty high.... Just curious what normal is?
*Also this isn't including my fiance's income - I would her salary to be "icing on the cake" cake money to go towards savings/fun/etc etc*