<prompt> Human: So Im in a dilemma. My wife and I are in our mid 30s and have a 6 month old. We are currently in a rental that is 1000month. My wife desperately wants a house for our family and we have found a new construction opportunity in an area and neighborhood we love. I want to get it for her, but Im worried I would be making a financial mistake. I need some objective opinions.My income:Base of 62500 plus bonusesLast year I made right at 100kSavings 13kThis year I wont make near that as I changed locations and am building a new market. In time, I should match andor exceed what I did before, however, nothing is certain.Wife is currently a stay at home mom. Eventually she will go back to work making approximately 50k but that will be years down the road.Our debts :Me: 800monthHer: 550 monthWe are currently on a tight budget as it stands but things are showing signs of picking up on the income side and we will be paying off her car soon which is 300month.House:2510002900 sqftWill be completed in December Payment would be right at 1500In essence I would need to come up with an additional 500 net each month to maintain the same tight budget. Im justifying the purchase to myself saying that the tax savings of owning plus paying off her car will make up the difference. I know my income will continue to increase but I worry about being house poor. I dont want to miss the opportunity of the perfect house for us while rates are low. Thoughts?  <response>: It sounds like youre saying you would be 500 short of being able to make your mortgage payments and pay all other obligations with your current income if you bought this house. You also dont have enough for even a 10 down payment closing costs. Your budget would also not allow any savings, and would not allow for emergency repairs to the house.Im sorry, but it sounds like something you cannot afford.That said, I think you very realistically can save for a house before your kiddo enters kindergarten. Finally paying off the car sounds like it will give you an added 300 mo, and your wifes income, after taxes and childcare, should mean another 1200 a month easy. Even with emergencies and occasionally treating yourself, you can save 15k a for the three years between your kids first and fourth birthday. Heshe will be able to start school when you buy that house and wont lose friends switching districts Midway through.Youre in a great position, just set goals and save a little longer.Happy 4th. 