Should I get pre-approved before shopping?

Yes. A pre-approval letter shows sellers you're serious and locks in a rate window. It's also the best reality check on your budget.

Does the lender count my spouse's income?

Only if they're on the loan. Adding a co-borrower usually raises the maximum, but their debts and credit also factor in.

How much house can I afford?

Lenders measure affordability with debt-to-income ratios. That gives you a ceiling. The harder question is what's actually wise — and that's almost always lower.

How lenders measure affordability

Two debt-to-income (DTI) ratios drive almost every conventional approval:

Front-end DTI — your housing payment ÷ gross monthly income. Common cap: 28%–31%.
Back-end DTI — (housing payment + all other monthly debts) ÷ gross income. Common cap: 36%–43% for conforming loans, sometimes higher with compensating factors.

The lender solves for the highest home price that keeps both ratios under their limits.

Why the lender's max isn't the right number

The lender's number is gross income — it ignores taxes, retirement, healthcare.
It excludes maintenance and repairs (1–2% of home value annually is typical).
It excludes lifestyle costs that don't show up on your credit report.
It assumes nothing changes — no kids, no medical events, no income drops.

A more realistic budget

Aim for total housing (PITI + HOA) under 25–28% of net take-home pay.
Keep at least 3–6 months of expenses in liquid emergency reserves.
Don't drain retirement accounts or skip 401(k) matches for the down payment.
Run the calculator at conservative, moderate, and stretch tiers — and pick a tier you'd still be comfortable with if rates rose 1%.

What raises (and lowers) what you can afford

Raises it: larger down payment, lower interest rate, paying off other debts, longer term.
Lowers it: more debts, higher rates, higher property taxes, HOA dues, PMI when LTV is over 80%.

Frequently asked

Should I get pre-approved before shopping?: Yes. A pre-approval letter shows sellers you're serious and locks in a rate window. It's also the best reality check on your budget.
Does the lender count my spouse's income?: Only if they're on the loan. Adding a co-borrower usually raises the maximum, but their debts and credit also factor in.

Estimates only. This calculator is not a loan offer, loan approval, official Loan Estimate, Closing Disclosure, tax advice, legal advice, or financial advice. Actual payments, rates, taxes, insurance, mortgage insurance, closing costs, and loan terms may vary. Contact a qualified lender, tax professional, or financial advisor for guidance.