Discussion: Home Affordability

Hi everyone, potential first time homebuyer here and am looking for some feedback on house affordability.

My fiancée (26F) and I (28M) are looking to make a purchase in NJ, which is a ~1 hour commute to our jobs in NYC (so HCOL). As such, homes in these areas can get expensive. We are currently assessing homes in the $1MM-$1.5MM range (20%-25% down), but want to make sure we aren’t biting off more than we can chew. Some background on our incomes/savings:

• Combined income: $425k ($225k base / $100k bonus for me, $100k base for my fiancée)

• Combined liquid savings/investments: $640k

• Combined 401k: $160k

• No debt (no cars, no cc debt, no student loans)

• Monthly non-living expenses: ~$2k

With regard to my job, I believe it is stable with continued room for growth. My fiancées role is a bit less stable and less growth, so some risk associated with potential temporary loss of her income.

Want to emphasize that we’re just looking for outside feedback and different perspectives/experiences. This will be our first ever real estate purchase, so learning as we go. Thanks in advance!