How Much House Can I Afford?

Buying a home is exciting but before you fall in love with a kitchen or backyard, it’s important to understand how much house you can comfortably afford. The key is balancing your dream home with your real financial picture.

Most lenders use the 28/36 rule: your monthly housing expenses (including mortgage, taxes, and insurance) should be no more than 28% of your gross income, and your total monthly debts (including car loans, student loans, etc.) shouldn’t exceed 36%. These ratios keep your budget healthy and protect you from becoming “house poor.”

Getting pre-approved with a trusted local lender is the best first step. They’ll review your income, credit score, and existing debts to give you a clear price range-and help you understand how much cash you’ll need for a down payment and closing costs.

Please do me a favor and don’t just focus on what the bank says you can afford, think about your lifestyle, savings goals, and comfort zone. If you love to travel, eat out, or invest, choose a payment that leaves room for those priorities.

When you’re ready to explore homes within your ideal range, The Bill Lanier Team can help you find the perfect fit without stretching your budget.