I am in a similar situation, similar income though older with young kids and both of us are working full time (and plan to continue so). You should find something for which the total PITI (yes, add property taxes and mortgage and house insurance to your principal+interest) is comparable to your rent, which I assume you are pretty comfortable paying (but take into account your wife may not work anymore). Then work your numbers backwards from there. That’s what you can afford. (If you are not saving any money with current rent plus your wife’s income, then you should reduce the PITI amount by at least $500-1000).
I don’t know where you work and how comfortable you are commuting long distances, but it may not make sense to buy somewhere where the commute is over 1 hr one way. We owned a townhome and once we had kids we didn’t want for each of us to spend 45′ each way at rush hour commuting. We wanted to spend as much time as we could with the kids, plus all the chores that come along with it. So we sold. And I wouldn’t buy there that far from work again, at least not until my kids are in college. I set my commute time limit to 30′, tops.
Given your situation, I’d continue to rent something small another 2-3 years and save more money – ideally until your child starts preschool or kindergarten. Defnitely wait until you have the kid(s), your life will change dramatically. You will realize how expensive kids can be – if they grow out of something, then there is something else that costs more money than it should. Then you will figure out where you are – income/jobs wise, as well as how much your expenses are(college funds, daycare, activities…). Hopefully by then the coastal houses, and 56 corridor (PUSD) (that’s where we are looking) will go down some more.
