04/22/2025
What you can afford vs. what you're approved for, what does this mean?
Just because a loan officer says you can afford a certain payment…doesn’t mean it’ll feel good month after month.
When you apply for a mortgage, lenders look at something called your debt-to-income ratio, or DTI. It’s the percentage of your monthly income that goes toward paying debts -- like your mortgage, car loans, student loans, credit cards, all of it.
Most loan programs allow up to 43–50% of your before tax income. But just because you qualify for it… doesn’t mean it’s the right move.
Here's the advice I give my buyers:
Figure out what fits your budget first. Instead of asking ‘How much can I qualify for?’ -- a better question is, ‘What fits into my life?
Look at your current rent or housing costs. If you’re managing those comfortably, that’s a great starting point. If it feels like a stretch already, it’s a sign to be cautious.
A smart mortgage payment doesn’t just get you into a house, it leaves you room to live, too.
And if you want help running real numbers based on your life, I’m happy to walk you through it.
