Definitely take the advice of others telling you NOT to stretch. If this is your first home you really have little perspective on the expenses that go into owning a home. I’m sure you’ve thought about them but you should get a clear idea on how much you’ll pay for things like insurance, property tax, decorating, furniture, maintenance, remodeling (even if it’s perfect now if it’s the home you’re going to stay in, it will happen), etc. Figure out realistically what all of that is going to cost. And then add some more to that figure for the unexpected.
You both work now and you have no children but you are planning on having them in the future. Children cost money! That’s pretty obvious but have you worked two children and all of their expenses into your future budget? Have you worked in time off of work and daycare if you’re planning on both working or the loss of income if one of you is going to stay home with them? How about extra food, clothing, college savings, medical costs, furniture, car seats, toys, after school activities, transportation, braces, etc. etc. the list goes on and on. You can’t overlook the fact that adding two children into your life will increase your spending. Or who knows, when going for your 2nd child you could find out it’s twins (hey, happened to ME!).
And like someone else mentioned, you’re figuring on best case scenario. That is without any layoffs, illnesses, family issues, accidents for you or your wife.
Sorry to sound pessimistic but it’s people who maxed out their purchasing ability and didn’t think ahead who are somewhat to blame for the mess we are in right now. Put at least 20% down and don’t spend any more than 30% on housing. Personally I’d aim more conservatively than that but that’s just me. I also would never cave on things like maxing out retirement, insurance, investing, and college savings for a “better” house. Nor would I want to give up things I enjoy and be a slave to a mortgage.
