<prompt> Human: Im 25, married with no kids, I make 40k a year expecting to get a raise at the end of the year, and I have 12k in savings. Im putting an offer on a house that is listed at 225k, but Im offering 5k over and asking for 3,000 in closing costs. Ill have an 8k down payment, and about that much in closing costs as well. My realtor will credit a little over 1,000 toward the closing costs, and the lender will cover some if I take a slight hit on the interest rate. If I go through with this, Ill end up with just a couple thousand in savings at best. Am I making a bad decision? Edit: Thanks for all your advice. Im fairly well convinced this is a bad move. Its difficult to come to this conclusion after finally finding a house we really like, in just the right area. But obviously I need to be thinking more about the future. Now I just need to convince my wife that its a bad move. I think the best idea for us is to continue saving for the rest of the year, then hopefully that raise comes through and well be in better shape to look for a house probably still closer to 200k or less next year. Assistant: You dont make enough nor do you have a big enough down payment for house that expensive. Human: Im approved for up to 250k, and with an FHA loan, Im only required to put down 3.5  <response>: The common recommendation is to keep home price under 3X income and put 20 down. Your plan sounds terrifying to me. 