Ask Harry · Buying a Home
How much home can I actually afford?
Short answer
Your comfortable monthly payment matters more than your max approval, and that means looking at the whole budget, not just the mortgage.
Full answer
This is the first question I hear from almost every buyer, so let's get it right. Start with what your lender pre-approves you for, and make sure that pre-approval includes an estimate of the property taxes and HOA fees, so there are no surprises later. Then build in the real numbers: insurance, utilities, and maintenance.
Here's the part people often skip: think about the rest of your budget, not just the housing payment. You still want to be able to live your life, save, and handle the unexpected.
It's also smart to keep a slush fund for maintenance and repairs. A good rule of thumb is around 1% to 2% of the value of the home every year, depending on the type of property, its condition, and other variables.
And for the DC area, budget roughly 3% of the purchase price for closing costs on a conventional loan, a little more for FHA and VA. The number that matters isn't the max approval, it's the payment you're comfortable with every month. So there you go.
Know the difference
Two numbers, not one
What you're approved for
This is the ceiling a lender calculates from your income, your debts, and the rate, stated as the maximum they are willing to lend you. It is the top of the range, not the target.
What you can comfortably afford
This is the number that actually matters for you: the payment that fits your whole budget, covering the mortgage plus property taxes, homeowners insurance, utilities, any HOA fees, upkeep, and everyday life. Those costs vary across DC, Maryland, and Virginia jurisdictions, so the same price can mean very different monthly numbers depending on where you buy.
Why it matters
Why the monthly number wins
Comparing homes by their true monthly cost matters more than the sticker price. Small differences in rate, property taxes, and insurance change the monthly number significantly, so the home that looks cheaper on paper is not always the one that fits your budget. A comfortable payment keeps the home a joy rather than a burden, and that is the number worth building your search around.
Putting it to work
What this means when you're looking
Stay inside your comfortable range when you tour homes, not the top of your approval. Get pre-approved early so you can move when the right home shows up. And treat the approval letter as the ceiling rather than the target: the number that keeps life comfortable comes from the whole budget, not the maximum.
Ask Harry
Ready to talk it through?
Whether you are buying, selling, or relocating in the DC area, the first step is a conversation. No pressure, just a straight answer.