I should add...a lot of people think it's rude to be told "perhaps you can't afford it". Because we have had debt marketed to us so effectively, that we're almost offended when we are told to wait. Especially when a lot of other people who make their living off mortgages (real estate pros, mortgage lenders) are encouraging you to take the plunge into home debt. (By posting on this board, it's as if you had asked a car salesman how much car you can buy - it's the wrong person to ask.) Resist the temptation to see debt as a privilege, because I guarantee not a single one of the people on this board will be around to pay your mortgage payments for you if you get in trouble and fall behind. You'll be going through living hell as you deal with questions such as "Where do I go?", "What do I do?", "How will I live?", "Will this ruin my credit?", "Do I declare bankruptcy?", and all the folks who told you that almost $500/mo car payment was "minimal debt" will be nowhere in sight. Do you think that a single person in the U.S. that has undergone foreclosure over the past 2 years intended to do so when they purchased their house? By the way, if the real estate pros are telling you that you have "minimal debt", then ask THEM to pay your minimal car payment for you! You'll see how small your current debt really is!