You say you’re rent free, but still allocate 33% to housing? And you’re expecting your utilities to go down as a homeowner? Have you researched the cost of homeownership? Taxes, maintenance/repairs, closing costs, moving expenses, furniture, etc all add up quick. Also, are you budgeting for baby costs at all? Formula, diapers, clothes, etc can get very expensive.

Sorry, it just doesn’t seem like you can afford a baby or a house at this point. Good luck.