First time home buyer — am i stretching myself too much at $490k? VA loan + 3.99% rate
My wife and I are first-time home buyers, and we’re seriously considering a new construction home in TX
The house is $490k. The builder is offering a 3.99% fixed VA loan rate through their lender, along with incentives toward closing costs/rate-related costs.( $0 out of pocket ) The estimated total monthly payment is around $3,300, including property taxes, homeowners insurance, and HOA.
Our combined monthly income is about $8,800 (take home)
We currently rent and our rent is $2000 and after looking at our budget, the payment seems doable, but my wife is nervous because this would be the biggest financial commitment we’ve ever made. I’m more interested because I think the 3.99% rate and builder incentives make this a pretty good opportunity.
A few other things:
We have a VA loan, so no down payment.
We have some existing car expenses, but one of our larger car payments will be paid off in december this year.
My wife would also have a much shorter commute after we move, which should save us a significant amount on gas.
The house is about 2,850 sq ft and brand new.
We don’t have a huge amount of cash sitting in savings, so I’m also concerned about having enough emergency reserves after closing.
For people who have bought their first home, especially with a VA loan:
Would you consider a $490k house reasonable with an $8,800/month household income and a ~$3,300 monthly payment?
Are we being financially responsible, or are we stretching ourselves too much?
And if you were in our position, would you take the 3.99% builder deal or walk away and look for something cheaper?
I’m looking for honest opinions, including people who think we’re making a mistake. Thanks!