How Much Home Can You Really Afford? (And Why the Bank’s Number Isn’t the Whole Story)

One of the most common things buyers tell me after getting pre-approved is:

“The bank says I can afford up to $___.”

That number can be exciting — but it can also be misleading if it’s the only thing you use to decide what you should buy.

A lender’s approval amount is important, but it doesn’t always reflect what feels comfortable for your real, everyday life. Let’s talk about the difference.

⭐️ What a Lender’s Number Really Means

When a lender pre-approves you, they’re looking at:

• income

• debts

• credit

• standard lending ratios

They’re determining the maximum amount you qualify for under lending guidelines — not necessarily what you’ll enjoy paying every month.

Think of it this way:
👉 The bank tells you what’s possible.
👉 You decide what’s comfortable.

⭐️ The Monthly Payment Is Only Part of the Picture

Your mortgage payment isn’t just principal and interest. Buyers often forget to factor in:

• property taxes

• homeowners insurance

• utilities

• maintenance and repairs

• HOA fees (if applicable)

• lifestyle changes (commute, fuel, childcare, etc.)

A home that technically “fits” on paper can still feel tight once real life kicks in.

⭐️ Comfort vs. Stretch

Some buyers are comfortable stretching their budget for:

• location

• long-term plans

• strong income growth

Others value:

• flexibility

• savings

• travel

• peace of mind

There’s no right or wrong — but knowing your comfort zone before shopping prevents stress, second-guessing, and buyer’s remorse later.

⭐️ A Better Question to Ask

Instead of asking:

“What’s the most I can buy?”

Try asking:

“What monthly payment allows me to still live the life I want?”

That one question changes everything.

⭐️ Why This Matters Before Touring Homes

Once buyers start touring homes above their comfort range, it’s very hard to dial expectations back. Getting clear early helps you:
✔️ shop confidently
✔️ avoid emotional whiplash
✔️ make stronger offers
✔️ feel good about your decision long after closing

💬 Final Thought

Buying a home should feel exciting — not stressful. The goal isn’t to spend the most money possible; it’s to buy a home that fits your life today and tomorrow.

In the next post in this Buyer Series, I’ll break down what to look for when touring homes — and what not to overthink.

If you ever want help talking through numbers, scenarios, or expectations, I’m always happy to help.

– Shawn Long
ERA Martin Associates | Shawn Sells Delmarva
Serving Wicomico County & Maryland’s Eastern Shore

 Real estate doesn’t have to feel overwhelming — you don’t have to figure it out alone.