Is the rule of thumb “Multiply your income by 3 and that is what you can afford” actually reasonable?
I am nervous because my partner and I just agreed to start house-shopping. We haven’t gotten pre-approved yet because we would just like to see what is in our area first.
We both have stable jobs, although they don’t pay much. The only debt we have is him: a $ 10,000 auto loan and me: a $ 1,700 student loan.
Is it reasonable to think that two adults could buy a house if they both had full-time jobs that only paid a bit above minimum wage?
We did the multiply by 3 thing and have a few houses at or below that price. We would be hoping for an FHA loan and we have the required 3.5% down payment (for the price range mentioned above).
I just don’t want to get laughed at when we try to get pre-approved!