Whether you're buying solo or with a partner, there are a lot of expenses associated with homeownership that you need to prepare for aside from your monthly mortgage payments. Especially if you’re both a first-time homeowner, things like closing costs, repairs and maintenance, utilities, homeowner’s insurance, property taxes, and other costs can catch you both by surprise.
By looking at your combined monthly income and recurring expenses, you can begin mapping out how much you’ll be able to afford. As a general rule of thumb, most financial experts agree that your housing payments should not exceed 30 percent of your gross monthly income. And while you’re on the topic, be sure to also consider how much you have on hand for a down payment, and how much you still need to save.
Moreover, it’d be helpful to agree on how you will pay for these expenses as a couple. Will you divide each expense in half, or will you each take responsibility for certain bills? How will you share the expenses if one of you experiences a financial crisis?