How much home can I actually afford?

If you're wondering how much home you can actually afford, you've come to the right place. 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.