How Much House Can I Really Afford?

Let’s Cut the Fluff and Talk Real Numbers

Look, buying a home isn’t just about picking your dream kitchen or finally getting a yard for your dog. It’s about making a decision that won’t keep you up at night wondering if you’ll still be able to afford gas, groceries, and brunch after closing.

So if you’re asking yourself, “How much house can I really afford?” Good. You should be.

This guide doesn’t exist to sell you a mortgage. It exists to help you avoid a mortgage you’ll regret.

 

Let’s Start with the Truth

You don’t want the most expensive house you can technically qualify for. That’s like maxing out your credit card on a vacation and hoping your next paycheck will save you.

What you want is the smartest house you can afford.

One that fits your lifestyle

Leaves room for the unexpected

And doesn’t crush your ability to live your life

 

The 3 Rules That Matter

1. Know your monthly comfort zone, not just your lender’s approval limit

Just because a lender says you can afford $3,500 per month doesn’t mean that fits your lifestyle. Are you okay with giving up travel? Random Amazon splurges? Two streaming subscriptions and sushi Fridays?

Don’t just ask, “Can I qualify?”

Ask, “Can I live on this budget and still feel like me?”

✅ Pro Tip:

Run your numbers using three monthly payment points:

• Your ideal monthly payment
• Your acceptable stretch payment
• Your hard stop payment

Then stick to that ceiling. No exceptions.

2. Understand DTI without falling asleep

Debt-to-Income Ratio (DTI) is your lender’s way of figuring out how much risk you are. It’s a simple formula:

DTI = Total monthly debts ÷ Gross monthly income

Most lenders want to see your total DTI under 43%

Want better rates and loan options? Aim under 36%

What counts as a debt?

• Car loans
• Student loans
• Credit card minimums
• Personal loans
• Your future mortgage (including taxes, insurance, and HOA fees)

Not included: gym memberships, Netflix, groceries, and DoorDash

Which is why you need to do more than DTI math. Factor in your actual lifestyle.

3. Your budget isn’t just about what you earn. It’s about what you keep.

Too many people say “I make six figures” and then realize they’re still broke after bills.

Income is part of the puzzle, but your savings habits, credit score, and monthly expenses matter just as much.

Ask yourself:

• Do I have an emergency fund with 3 to 6 months of expenses?
• Will I still be able to save after buying this house?
• Am I comfortable with the idea of unexpected repairs?

If the answer is no, scale the budget back.

 

So How Much House Can You Afford?

Here’s a super simple rule:

Your all-in housing costs should stay under 30% of your gross income.

That includes:

• Principal
• Interest
• Taxes
• Insurance
• Mortgage insurance (if applicable)
• HOA fees

Example:

If you make $100,000 a year, aim to keep your total housing costs under $2,500 per month.

But remember, this is just a guideline. If you live in an area with a high cost of living and solid income growth potential, you might push that to 35% with a brilliant plan.

Quick Math Check

Let’s say your monthly income is $6,000

You have $500 in monthly debts (car and student loan)

You want to stay under a 40% DTI

Here’s how it breaks down:

$6,000 x 0.40 = $2,400 max total debt

$2,400 – $500 = $1,900 for your total monthly housing costs

That means you should target a home where the mortgage (plus taxes, insurance, etc.) is around $1,900 per month.

That probably puts you in the $275,000 to $325,000 purchase range, depending on your down payment and rate.

This is a ballpark. But it’s a powerful one.

 

Mistakes That Blow Up Budgets

1. Ignoring property taxes
2. If you’re looking at homes in two counties, the difference in tax rates can be hundreds per month
3. Underestimating insurance
4. Especially in areas with flooding or fire risk. Always get a quote before falling in love with a home
5. Forgetting the rest of your life
6. That dream backyard pool might make you house-poor if you still want to take vacations, pay for daycare, or retire someday

 

What You Should Do Next

1. Get a real pre-approval
2. Not a calculator. Not a guess. An honest lender will break it down and show you actual payments based on today’s rates and your financials
3. Ask for a few home price scenarios
4. What does $325k look like monthly? How about $400k with 5% down? This is where the clarity comes in
5. Decide what feels right before you go shopping
6. The house will not magically feel more affordable once you’re standing in the kitchen

 

Final Thought

This isn’t about settling. It’s about choosing power over pressure.

The right home will support your lifestyle. It won’t sabotage it.

So before you start scrolling listings like it’s your side hustle, ask the fundamental question:

How much house fits my life, not just my lender’s math?

Get clear. Get confident. Get a home that works for you, not one that owns you.

Want help figuring out your comfort zone?

I’ll send you a custom affordability breakdown—real numbers, real fast. No spam. No sales pitch.

Just send me a message that says “BUDGET” and we’ll build your plan or contact me