How Much House Can I Really Afford?

A lender's pre-approval tells you the maximum you can borrow, not what's comfortable for your family. Start with your own budget.

Count Every Monthly Cost

• Principal and interest
• Property taxes and homeowners insurance
• Mortgage insurance, if required
• HOA dues, if any
• Utilities, maintenance and repairs (plan on 1% to 2% of the home's value per year)

Keep a Cushion

Aim to keep an emergency fund after closing. Owning a home means you're responsible for repairs that a landlord used to cover.