According to the U.S. Department of Housing and Urban Development (HUD), affordable housing means that you should be paying no more than 30% of your gross income for housing costs, including mortgage principle and interest, property taxes, home insurance premiums, and utilities. In reality, home ownership costs much more when HOA fees, maintenance, and repairs are included. 

You can avoid becoming over-extended by taking the following steps:

Buy below your means. Your lender will qualify you for the maximum you can afford, so be wise and buy a less expensive, smaller home. Use the difference for savings and investments. You can always move later.

Plan for rising costs. Property taxes are based on sales prices, so you’ll only pay the seller’s rate until the next assessment which will be much higher next year. Home insurance, utilities, etc.  will rise in cost most years.

Plan for the long-term. It takes time to build equity in real estate. When you buy a home, plan to live there for at least seven years, then rent it out.