GOAL: Make a rough estimate of how much home you can afford based on your income and current debt.

One of the most common mistakes buyers make is confusing what the bank approves with what actually feels comfortable.

Those numbers are often very different.

What lenders look at

Most lenders use a general guideline that your total monthly debts should be around 36 percent of your income.

That includes:

• Your future mortgage payment

• Car payments

• Student loans

• Credit cards

This is a guideline, not a lifestyle recommendation.

What you should think about

Your real budget should also leave room for:

• Travel

• Saving

• Emergencies

• Life being fun and unpredictable

Just because you can qualify for a number does not mean you have to spend it.

The costs people forget

When you own a home, your monthly payment is not the only expense.

Also plan for:

• Maintenance and repairs

• Utilities

• Insurance

• Taxes

• And future upgrades

About online calculators

They are a helpful starting point.
They are not the final answer.

They cannot see your real lifestyle, your goals, or your comfort level.

The bottom line

The right number is the one that lets you sleep at night and still enjoy your life.