How much mortgage can i afford?
This is hands-down THE first questions people ask when they start thinking about buying a home: “How much house can I actually afford?”
The truth? It depends…it’s a lot more complex that a simple answer. It depends on your income, your debts, your credit, and what kind of lifestyle you want to maintain after closing. Just because a lender, like myself, says you can qualify for a certain amount doesn’t mean you should borrow it. My job is to help you find that sweet spot between comfortable and confident.
The Basics
Lenders use a few main factors to determine how much you can afford:
Debt-to-Income Ratio (DTI) – This is your monthly debt payments compared to your gross monthly income. Most loan programs prefer this to stay below 45–50%.
Credit Score – A higher credit score usually means better rates and more loan options.
Down Payment – The more you put down, the less you borrow, and the lower your payment.
Interest Rate – Even a half-percent change in rate can move your monthly payment up or down by hundreds of dollars.
Beyond the Numbers
But here’s where experience matters. What you qualify for on paper doesn’t always line up with what feels good in real life. You still have to consider:
Your comfort level with monthly payments, again, just because you can doesn’t mean you should
Future goals like travel, saving, or investing
Maintenance, property taxes, and insurance
Lifestyle expenses that make life enjoyable
I walk my clients through every piece of this so they understand not just what they can get approved for, but what truly fits their life and long-term goals. It’s not about maxing out your budget, it’s about creating financial breathing room.
Real-World Example
Let’s say you make $100,000 a year and have $500 a month in car and credit payments. You might qualify for a home around $450,000–$600,000 depending on your down payment and rate. But that doesn’t automatically mean you should buy at the top of that range. The right number is one that lets you build equity and still enjoy your life outside of homeownership.
Let’s Figure Out Your Number
If you’re thinking about buying soon, I can help you calculate exactly what fits your budget…not just what a formula says. We will look at your goals, your finances, and your comfort zone to build a plan that makes sense now and in the future.
Paige Bowman | The Mortgage Collective
Helping buyers make confident moves in Houston and beyond.
