I always give this advice to young people looking for a house:
Before even thinking of buying a house, put the difference between your current rent and your future house payment (including HOA, prop tax, and insurance) into the bank every month for 6 months, maybe a year.
For example, if you rent a place now for $1200 and your house payment will be $2500 / month. Put $1300 into the bank each month and don’t touch it.
This accomplishes three things:
1) You know what it is like to live without the money you will have to spend on the house payment. You can really tell if you can afford it, or if you want to afford it.
2) You save up additional money for a down payment.
3) You let the housing market slide a little more.
