For Buyers · Budgeting
Your lender decides what you can borrow. You decide what you can afford.
Those are two different numbers, and the gap between them is where a lot of buyers get into trouble. Here’s how to find yours.
Lenders are careful, but they make qualification decisions using averages and formulas. They don’t know the nuances of your life — the seasonal income, the kids’ sports schedule, the truck payment coming due next year. You do.
So leave room for the unexpected, and for all the new opportunities a home gives you to spend money: furnishings, landscaping, tools, fencing, and the repair nobody plans for. The house you can technically qualify for and the house you’ll actually enjoy living in are rarely the same one.
The 28/36 rule
The traditional benchmark lenders have used for decades — and still a good gut check.
Why Lenders Stretch It
As home prices have climbed, some lenders now approve ratios as high as 50%. That approval is real — but it’s a ceiling, not a recommendation. No matter how competitive the market feels, think hard before stretching your budget that far. Being approved for a number and being comfortable at that number are not the same thing.
Texas Taxes Change the Math
Property tax rates vary meaningfully between Grayson, Cooke, and Denton counties, and they’re folded into your monthly payment. Two homes at the same price in two different towns can carry noticeably different payments. Always run the numbers on the specific address, not the general area — and file your homestead exemption after closing.
Budget Past the Mortgage
Insurance, utilities, HOA dues where they apply, and maintenance all belong in the number. On acreage, add well and septic upkeep, propane, fence repairs, mowing equipment, and higher utility costs. Rural living is often more affordable per square foot and less affordable per surprise.
Think Two Years Ahead
Deciding what you can afford means paying attention to how your finances will look in the coming years, not just this month. A raise, a new baby, a business that has slow seasons, a kid heading to college — all of it belongs in the conversation. In the long run, your peace of mind matters more than the square footage.
A note from Jessica
I’ve never once pushed a client toward the top of their approval. The best closings I’ve been part of were the ones where the buyer walked in relaxed, and the worst stress I’ve watched people go through came from stretching for a house that looked perfect on paper.
Tell me your comfortable number, not your maximum. I’ll find you something good in it — and I’ll tell you honestly if what you want doesn’t exist at that price in the town you’re set on.
This page is general information, not financial advice. Talk with a licensed lender about your specific situation — happy to recommend a few local ones I trust.
Let’s find your number
Run the payment on a real listing, or start with my full buyer’s guide.