Quote from mariah96
Thank you! I didn't think about that. I live in Alabama. A RNs salary in alabama is estimated to be about 67,000 a year plus my husbands income of just 25,000 a year
I know you got that $67k figure from Indeed.com, but that is not accurate. People self-report bloated salaries on Indeed.
A new grad nurse in Alabama is going to start at anywhere from $18 to $23 per hour, depending on the city and specialty. The median RN wage in Alabama is $57k per year according to the BLS, but this is for experienced RNs only. The typical new grad in Alabama starts out at less than $50k yearly. Alabama is one of the lowest paying states in the US. In fact, most of the Southeastern states pay piddling nurse wages due to the low cost of living.
With an estimated starting salary of $45K for you along with your spouse's income of $25k, this results in a combined annual income of $70k. With good credit, most mortgage lenders will allow a married couple with a combined yearly income of $70k to borrow up to four times that amount, which would be $280k at the most. Then you must realize that your student loan debt might reduce the amount lenders will allow you to borrow because it affects your debt-to-income ratio.
Then you've gotta worry about funding your retirement, saving money for a rainy day in case you're fired, and all that good stuff. What are you going to do when you are 65 and your knees are bad from standing all those years? Do you seriously want to work as a nurse until you die? In essence, just because you can most likely qualify to obtain a $280,000 loan to buy a house doesn't mean it's a good idea.
I earn significantly more than the combined $70k income quoted above, but I live in a $100k house because I do not want to be blindsided with bills when certain events transpire (getting fired, getting injured, long term unemployment, etc.). By the way, it is 'newer' since it was built in 2004, and the 1900 square feet of space is more than enough room for me. Even when I was living in California I had an affordable house that cost about $150k.
There are plenty of nice $100k houses in Alabama. Live within your means. The $500k house is a disastrous idea if you will be living from paycheck to paycheck and unable to fund a retirement.