A lot of my first-time buyers want to make responsible decisions about buying a new home, and one of the first questions they ask me, is how much should I spend on a new home. Typically, you should spend no more than 25% of your gross income on your new home, which includes mortgage, insurance, and property taxes. 
Most of these first-time Nashville TN homebuyers have heard horror stories about being “house-poor” and want to avoid that situation at all costs- and I couldn’t agree more. There’s nothing like buying a new home, and not having enough money left over to heat/cool or furnish it…or eating ramen noodles on the floor, which is why I refer most of my buyers to talk with a mortgage lender first, to figure out how much they are comfortable in spending.
