How Much Can I Afford?
Knowing your budget is key to buying a home you'll love and feel comfortable in.
Just because you qualify for a loan doesn’t mean you should spend that full amount. Step 4 is all about finding the right balance between what you can borrow and what you can safely afford based on your income, lifestyle, and financial goals.
What Lenders Look At vs. What You Should
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Lenders will look at your gross income (before taxes) and approve you based on a percentage of that—typically 28–31% of your income for housing expenses, and no more than 43–50% for all debts.
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You should also consider your net income (after taxes), monthly expenses (groceries, gas, daycare, subscriptions), and savings goals.
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Use the pre-approval amount as a guide—not a rule.
Think Long-Term
Ask Yourself:​
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Will this payment still work if my income changes?
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Am I saving for emergencies, retirement, or other goals?
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Do I plan to take on other expenses (kids, business, vehicles) soon?
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Owning a home is a commitment. You want it to help your financial future—not become a burden.
Get Personalized Help from a Pro
This is a great point in the process to talk with a licensed mortgage professional. An expert can help you analyze your unique financial situation and guide you toward a price range and payment that makes sense for your goals.
If you’d like help determining your ideal home price and monthly payment, we offer a free consultation to walk through your numbers together. In just a quick call, we can break it down and give you the clarity to move forward with confidence.
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When you know your numbers, you can house hunt with clarity and confidence. In the next step, we’ll help you understand the many different loan options available—and which one might be right for your first home.