Can we afford a ~$1M Home?

Running some numbers and want to make sure I’m not (or am) being crazy!

• Take-home pay: $13,500/month (after maxing out 401(k), $3,300 FSA, and health benefits). One income.

• Current assets:

  • ~$500,000 in 401(k)

  • ~$270,000 in emergency fund/brokerage

  • ~$330,000 for down payment

Housing Budget:

• We’ve been pre-approved for up to $1.3M

• Homes we really like fall between $5,300–$5,900/month PITI which would be $900k-1M purchase price (before down payment)

Expenses and Debt:

• No other debt

• Non PITI spending: $7,700/mo (including daycare at $1,600/mo, $500/mo contribution to kids 529 fund, vacations, cars, etc.)

Future Income:

• $80,000 cash retention bonus in 10 months

• $20,000 in RSUs vesting in 11 months

• $30,000–$50,000 in RSUs expected to vest annually thereafter

• My wife plans to return to work in September 2026, which should cover daycare and contribute additional savings