Adulting Level:ExpensiveCurrent Crisis:Homeownership

Can I actually afford this house?

Let's use the real numbers, not the ones the listing wants you to see.

Time

TIME: 20 min

Cost

COST: $0

DIY?

DIY: Yes

Urgency

URGENCY: Low

1

What's probably happening

A lender will approve you for more house than you should buy. Approval is based on debt-to-income ratios, not on whether you'll have money left for groceries, repairs, or fun.

2

How urgent is it

Not urgent, but do this math before you fall in love with a listing, not after you've made an offer.

3

What to do first

Run your real numbers through a 28/36 rule check: housing costs under 28% of gross income, total debt under 36%. Include taxes, insurance, and HOA, not just principal and interest.

4

Can I handle this myself

Yes. This is arithmetic with your own bank statements, not a professional judgment call.

5

When to call a professional

Talk to a lender once your numbers look workable, and a fee-only financial advisor if you're stretching for a house that eats more than a third of your take-home pay.

6

What it might cost

Beyond the mortgage: closing costs (2-5% of the price), PMI if you put down less than 20%, and 1-2% of the home's value per year in repairs and maintenance.

7

What to gather first

Recent pay stubs, two years of tax returns, current debts and minimum payments, and your actual credit score, not an estimate.

8

Mistakes to avoid

Using pre-tax income for your budget, forgetting property tax increases after purchase, and treating the pre-approval number as a target instead of a ceiling.

Last reviewedFebruary 1, 2026

General educational information, not individualized tax, legal, or financial advice for your situation.

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In development

First-Time Homebuyer Survival Checklist

Planning to buy? This checklist walks through what to gather and check before you make an offer.

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