Know Your Numbers
How much house can I actually afford?
The honest answer isn't the number a listing site shows you, and it isn't just your salary. Here's how lenders actually figure it out — so you can start your search knowing your real range instead of guessing.
The short version
Lenders don't look at your income alone. They look at how much of it is already spoken for. A common guideline is keeping your total monthly debts — including the new mortgage — under roughly 43% of your gross monthly income. Some loan programs allow more, some less. Your real number depends on the full picture below.
What actually goes into the number
- Your income — gross monthly, before taxes. Steady, documentable income counts most.
- Your monthly debts — car payments, student loans, credit-card minimums. These lower the room left for a mortgage.
- Your down payment — more down means a smaller loan, and can help you skip mortgage insurance.
- The interest rate — it moves your monthly payment more than most people expect.
- Taxes & insurance — property taxes and homeowners insurance are part of the monthly payment, not extras on the side.
- Mortgage insurance — usually applies when you put down less than 20%. Not a dealbreaker, just part of the math.
A quick way to ballpark it
Here's an illustration — an example, not a quote. Say your household earns $7,000 a month before taxes with about $500 in existing monthly debts. Under the ~43% guideline, your total monthly obligations might land near $3,000. Subtract the $500 you already owe, and roughly $2,500 could go toward a housing payment — and that payment includes principal, interest, taxes, and insurance.
Every figure here is an example to show how the pieces fit — not an offer, quote, or guarantee. Your actual numbers depend on current rates, your credit, and the specific property.
Why knowing this first matters
Most buyers do it backwards: browse listings, fall for a house, then find out the numbers don't work. Knowing your real range first means you tour homes you can actually buy, make offers with confidence, and skip the heartbreak of a house that was never in reach.
Not sure where you stand? That's normal.
There are no dumb questions here. First home or fifth, it's completely reasonable to want the numbers spelled out plainly before you talk to anyone. That's the whole point.
Want your actual number?
No credit pull to start. No pressure. Just a clear picture of what you can afford.