Buying a home is one of the BIGGEST financial decisions you'll ever make, and if you're like most buyers, you’re probably wondering: How much home can I actually afford?

While there’s no one-size-fits-all answer, there are some solid guidelines to help you figure it out—AND some key things to keep in mind when choosing a lender.

The 3X Rule: A Quick Estimate

A good starting point? Your home price should typically be 3 to 3.5 times your annual income. So, if your household income is $100,000, you’re likely looking at homes in the $300K–$350K range.

Of course, this is just a rough estimate. Your actual budget depends on factors like your down payment, debt, and credit score.

The 35%/45% Rule: Keeping your Monthly Budget in Check

A more detailed way to calculate affordability is looking at your debt-to-income ratio (DTI). This is the percentage of your gross (pre-tax) income that goes toward monthly expenses.

1. 1. For first-time homebuyers, we recommend keeping your total monthly expenses (including your mortgage) below 35% of your gross income.
   2. More experienced buyers might stretch up to 45%, but anything higher can put you in financial stress.

👉 Example: If you make $5,000 per month, your total monthly home expenses (mortgage, taxes, insurance, HOA fees) shouldn’t exceed $1,750 to $2,250.

Not all Lenders are created equal - Here's Who to Trust

I ALWAYS recommend working with a trusted mortgage banker. A good mortgage banker will:

✅ Help you understand your loan options
✅ Advise you on what you actually qualify for (not just what’s on paper)
✅ Give you accurate monthly payment estimates
✅ Guide you through the entire loan process

Ask for Recommendations!

One of the best ways to find a great lender? Word of mouth. Ask your realtor (that’s me!), friends, or family for trusted mortgage banker recommendations.

At the end of the day, buying a home is about more than just numbers—it’s about making sure you’re financially comfortable and confident in your purchase. Ready to chat about what’s possible for YOU? Let’s connect!