Your lender decides what you can borrow. You decide what you can comfortably afford.
Lenders make approval decisions based on formulas and averages, but they don’t know your lifestyle, your plans or your spending habits the way you do. Leave room in your budget for the things a new home brings with it, from furnishings and landscaping to repairs and upgrades.
The 28/36 Guideline
Many lenders start with a guideline called the 28/36 rule. Your total housing payment should stay at or below 28% of your gross monthly income, and all of your monthly debt combined, including car payments, student loans and credit cards, should stay at or below 36%. Some loan programs allow higher ratios, but stretching your budget to the maximum can leave little breathing room when life happens.
Texas Costs to Plan For
Texas has no state income tax, but property taxes can be higher than buyers expect, and they vary widely by county, city and school district. Two homes at the same price can have very different monthly payments once taxes are included.
Homeowners insurance can also vary based on location, the age of the home and the condition of the roof. Many North Texas neighborhoods also have HOA dues that cover amenities like pools, trails and common areas. Factor all of these into your monthly number, not just the mortgage.
Look Ahead, Not Just at Today
Think about how your finances may change in the coming years, whether that’s a growing family, a career move or other big goals. The right home is one that fits your life comfortably now and in the future.
Let’s Talk Numbers
Our team can connect you with trusted local lenders and help you understand the full cost of homes in the communities you’re considering, so you can shop with confidence.