Start with the payment
Instead of choosing a $400,000 house and crossing your fingers when the payment appears, start with the monthly amount that fits comfortably into your actual budget.
Buying a Home
What monthly payment are you comfortable with?
That is where I like to start. A preapproval tells you what you can buy. Your budget helps determine what you should buy.
Work backward into a price range
The target payment, estimated rate, taxes, homeowners insurance, mortgage insurance, HOA dues, down payment, and loan program all help determine the price range you should be shopping in.
Remember the payment can change
Taxes, insurance, HOA dues, and adjustable loan features may change over time. Build some breathing room into the plan instead of using every dollar the approval allows.
Can buy versus should buy
The maximum qualifying amount is a lending calculation, not a spending recommendation. The better goal is a home price that supports your life, savings, and long-term priorities after closing.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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