Let’s talk numbers.
Whether you're a first-time buyer or moving up, the question of "how much house can I afford?" is the first (and most important) one to answer. But here's the catch: there's a big difference between what a lender approves you for and what makes sense for your life and long-term goals.
Start with the 28/36 rule. Most lenders use this as a baseline: your monthly housing costs shouldn't exceed 28% of your gross monthly income, and your total debt payments (including credit cards, student loans, car payments, etc.) shouldn’t exceed 36%. So, if you earn $6,000/month, try to keep your total mortgage (including taxes and insurance) under $1,680. Total debts? Keep them under $2,160. That gives you a healthy cushion and keeps you in a good financial zone.
But don’t stop there. Real estate isn’t just about math—it’s about your lifestyle. I always tell clients: it doesn’t matter if the bank says you can afford it if you’re sweating bullets every month just to cover your mortgage. Want to travel? Planning to start a family? Need flexibility in your monthly budget? You have to factor those goals into your decision. Be honest about your spending habits and create a personal comfort zone that goes beyond lender numbers.
Example time: Let’s say you're approved for $500,000. You could technically go all in. But when you break it down, that monthly payment plus HOA fees, utilities, and unexpected homeownership costs might stretch you thin. Maybe you’d rather shop in the $425,000 range, giving yourself breathing room for life to happen—like upgrading furniture, surprise car repairs, or a spontaneous weekend getaway.
Think long-term, not just monthly. A $300 bump in your mortgage might not feel like much today, but over 30 years, that’s over $100,000. What else could you do with that? Investing, saving, or just living without pressure. These are real conversations we need to have, especially in competitive markets where emotions run high and homes fly off the shelf.
Don’t forget upfront costs. Besides the down payment, you’ll face closing costs (which are usually 2-5% of the home price), moving expenses, possible renovations, and inspection/appraisal fees. Pro tip: have 3-6 months of expenses saved after you buy. That’s the real peace-of-mind number.
Bottom line: Your home should be a blessing, not a burden. Crunch the numbers, think long-term, and align your purchase with your real lifestyle. And if you're overwhelmed? You don’t have to do it alone. Partner with a real estate agent (👋) and a lender who take the time to look at your whole picture, not just the pre-approval letter.
If you're curious about how far your budget could take you in Utah's market, reach out. I'm happy to run the numbers with you and help you find a home that fits your life—not just your loan.
