Take home pay * .35 for ALL house expenses:

Example based on household income of $62,000/year

$62,000 tax bracket is 25% federal, more if you live in a state with state income tax.

100%-25%=75%

62000*.75=$46,500

$46,500/12=$3875/mo take home pay

$3975*.35=$1356

$1356 for all this:
Mortgage
Taxes $400
Insurance $150
Electricity $150
Gas $100
Water $50
Trash $30
Repairs $100

Figure the utilities and insurance and taxes first. Then you know how much you can spend.
$980
$1356-980=$376

We better find a very modest house….

Look at a mortgage calculator…
We can mortgage about $50,000 is all, assuming we have put 20% down.

.

You can afford about a $60,000 place-about a year’s household salary.

Wait. What?!

Yes, really.

If you want your house to be a blessing and not a curse, yes.

But why do I “qualify” for more?
Because real estate agents and banks may be trained to think you will be in the same house for 30 years and that you will get huge raises each year.

You can always move up in house. It’s much harder to sleep at night when you are stuck with one underwater