Budgeting and Affordability
Learning Center Stage 3 — Build Your Homebuying Budget
Your budget is not what a lender approves — it's what you can comfortably carry and still live your life. A lender's maximum tells you the most they're willing to lend, not a recommendation. Lenders don't know your childcare costs, your travel habits, or how much you want to save each month. Only you can decide what actually fits.
Your monthly payment is also more than principal and interest. It typically includes property taxes, homeowners insurance, and — if you put down less than 20% — mortgage insurance. Add HOA fees, utilities, and a maintenance reserve to see the real number you'll live with, not just the loan payment.
Before committing to a price range, stress-test it: subtract your target housing payment and other debts from your take-home pay, and see what's left for savings and everyday life. If that number feels thin, the price is too high for you — regardless of what you're approved for.