How Much House Can You Really Afford?
What a lender will approve and what you should spend are two different numbers, and the gap between them is where buyer's remorse lives. Here is how to find the payment that fits your life — not just your loan file.
The 28/36 rule, and why it is only a starting point
The classic guideline says your housing payment should stay under 28 percent of gross monthly income, and all debt payments combined under 36 percent. It is a decent sanity check — but modern loan programs routinely approve well beyond it, sometimes up to 50 percent debt-to-income on strong files.
That is the trap. An approval at the top of the range is a statement about default risk to the lender, not about whether you can still afford daycare, travel, and retirement contributions.
The lender's maximum measures their risk, not your lifestyle. Those are different questions.
In Texas, the payment is more than the mortgage
Texas has no state income tax, and property taxes carry that load. Depending on the county and school district, property taxes in DFW commonly add hundreds of dollars per month to a payment — often more than buyers from other states expect. Add homeowners insurance, possibly HOA dues, and mortgage insurance if you put less than 20 percent down.
When you budget, budget the full PITI — principal, interest, taxes, and insurance — not the loan payment alone. Two identical houses in different school districts can carry meaningfully different monthly costs.
In Texas, always ask for the full payment with taxes and insurance. The loan payment alone is a half-truth.
A better test: live the payment first
Here is a practical exercise. Take the full monthly payment you are considering, subtract your current rent, and move the difference into savings every month for two or three months. If that feels comfortable, you have proven the budget — and grown your closing fund at the same time. If it pinches, you just learned that lesson for free instead of at the closing table.
Test-drive the payment with real money before you commit to it for thirty years.
When we run numbers with clients, we show the full payment at several price points so you can pick the one that fits your life, not just your approval. Want to see yours? Call Steve Barton at 214.673.1319 or visit corecommunitymortgage.com.
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