How Much House Can You Afford? A Simple Guide for Homebuyers

Buying a home is exciting — but before you start scrolling through listings or falling in love with that dream kitchen, there’s one essential question to answer: How much house can you actually afford?

Let’s break it down so you can house-hunt with confidence (and avoid surprises later).

1. Understand Your Budget

Before anything else, take a good look at your current finances:

• Monthly income (after taxes)
• Monthly debts (student loans, car payments, credit cards)
• Savings (for your down payment and closing costs)

A good rule of thumb is the 28/36 rule:

• Spend no more than 28% of your gross monthly income on housing.
• Total debts (including your mortgage) should be no more than 36%.

Example: If you make $6,000/month before taxes, 28% of that is $1,680. That’s a comfortable starting point for your monthly mortgage.

2. Factor in More Than Just the Mortgage

When calculating what you can afford, remember it’s more than just the loan amount. Your monthly housing payment includes:

• Principal & Interest (your loan payment)
• Property Taxes
• Homeowners Insurance
• HOA Fees (if applicable)
• Private Mortgage Insurance (PMI) if your down payment is under 20%

Use my mortgage calculator or ask me who my preferred lenders are to get a full estimate.

3. Get Pre-Approved — Not Just Pre-Qualified

A pre-approval from a lender gives you a clear picture of how much you can borrow and shows sellers you’re serious. It’s based on a deeper review of your credit, income, and debts — and often makes your offer stronger.

4. Set Your Comfort Zone — Not Just the Max

Just because a lender approves you for a certain amount doesn’t mean you should spend it. Think about:

• Lifestyle goals (travel, kids, career changes)
• Emergency fund (don’t drain your savings!)
• Home maintenance (budget 1–3% of the home's value annually)

Pro Tip: Choose a monthly payment that lets you live — not just pay bills.

5. Work With a Trusted Agent (Like Me!)

Once you know your budget, I’ll help you find homes that fit your finances and your wishlist. We’ll make sure you’re not just buying a house — you’re investing in your future.

Ready to Get Started?

Let’s figure out your home-buying number together. I can connect you with a trusted lender, answer your questions, and guide you every step of the way.

Contact me today for a free buyer consultation — or just to chat about your options!

Need a downloadable “How Much Can I Afford?” checklist? Let me know and I’ll send it your way!