Do you think I can afford this house?

Do you think I can afford this house?
My husband and I want to purchase this house. It is $60,000. We will put down 20% ($12,000) and get a 15 yr mortgage, at 4.625%. The payments will be $370 a month, and $200 in property taxes. ($570 total). The seller will pay 4% towards closing costs, plus $500 for flooring allowance ($2,900 total). We have been approved for a $100,000 mortgage.

My husband makes $2,600 a month after taxes ( up to $3,100 w/ overtime) and I make $700 a month, but take out $500 to save up for the upcoming semester of school. After, we have $2,800 monthly income.

We have about $8,000 in investments, and $20,000 saved up for the purchase of this house. Upon purchase, after a 2008 tax amendment, we will get a check mailed to us for $6,000, thanks to the first-time home buyer tax credit! :)

We will need to pay utilities, home related insurances (home insurable for $50 a month- AAA), $250 a month for cell bill, and car insurance, and a couple small expenses. I have $3,000 in student loans that I won't need to pay in for at least 2 years. ( I may not end up paying, as my parents generously suggested they might may as grad gift) and he has $200 in credit card debt currently, that he is paying off ASAP (car repair last month) We don't typically use credit cards for everyday purchases.

The house doesn't appear to need any major repairs, inspection came in near flawless. The kitchen is outdated, but that can wait.

Can we afford this home? Also, we are just starting out. We don't have furniture and don't expect to buy a houseful at once. But, how much do you think we will be able to spend for furniture and cosmetic updates, if any?

Thank you for reading this, and for your advice!
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You can afford this house. Congratulations.

At $570 a month for mortgage (property taxes included) and an approximate gross Income of around $4000/month you use less than 20% of your gross income towards the mortgage. (the recommended "safe zone is 28% to 30%). Your other liabilities are minor and you have virtually no credit card bills. Even the $3000 you owe on the student loan should not be a burden.

I don't know where you live.... but I wished I could rent a house for under $600 a month and would be in 7th heaven if I could find a decent house to buy at $60K.

Go for it.... and keep adding to your emergency funds. Furniture can be found cheap in any thrift store and if you give yourself the time to look you will find decent furniture. You should look into buying energy efficient washer and dryer and check your water heater. If it is old... replace it with a new energy star model and you will save a lot in utilities.

Your bank approved you for $100K - don't get tempted and use the remaining 40K to buy furniture and make improvements right away.
Instead keep your saving habits and tackle one job at a time with money you have saved for each project.

If you don't overdo the upgrades right away and spend money that you don't own... you will be fine.
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$60,000??? do you live in a ghetto area?? where i live houses are about $600,000
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You should be fine with your income. Also, you stated you were pre approved for 100k, so, obviously, the bank has faith in your ability to repay that also.

I make a tad more than you and your hubby and bought a place for 75k. I don't have any problem making the payments.