As a second grade teacher, Joanna takes home $2,908 a month. She has $1,845 of monthly expenses, and $8,500 in her emergency fund, which gives her a monthly excess of $1,063.
The home Joanna wants to buy is $150,000, and she needs $5,000 for a down payment. She plans on taking the $5,000 out of her emergency fund, and the bank has already approved her for the mortgage.
Can Joanna afford to buy her first home?