How Much House Can I Really Afford?

by Nicole Petet

It’s a great question—and the answer involves more than just looking at the price of the home.

Most lenders use a guideline called the debt-to-income ratio, which compares your monthly income to your monthly debts. Generally, lenders want your housing payment—including mortgage, taxes, insurance, and possibly HOA fees—to stay within a comfortable percentage of your income.

But here’s the important part many buyers overlook: what a lender says you can afford and what feels comfortable in your lifestyle may be different.

When buying a home in North Central Texas, it’s important to consider additional costs such as:
• Property taxes
• Homeowners insurance
• Utilities
• Maintenance and repairs
• Commuting expenses if you’re traveling to larger cities

For example, a home that fits perfectly within a lender’s approval range might still stretch your monthly budget if it requires significant upkeep or has higher property taxes.

That’s why I always encourage buyers to look at the full picture, not just the purchase price. The goal isn’t simply to buy a home—it’s to buy a home you can enjoy without financial stress.

The best first step is getting pre-approved with a trusted lender and then working with a local Realtor who understands the market and can help you identify homes that truly fit your budget.

Buying a home should feel exciting, not overwhelming. When you understand what you can comfortably afford, the entire process becomes much more enjoyable—and much more successful.

I have a list of local lenders I can recommend.

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