both · Philadelphia & Montgomery
How much house can you actually afford?
The 28/36 guideline, what lenders will approve vs. what you should spend, and the costs first-timers miss.
In this lesson
The guidelineThe costs beyond the mortgageShould I buy at my pre-approval amount?The guideline
The classic yardstick: housing costs at or under 28% of gross monthly income, and all debt payments combined under 36% — though many loans approve well above that. Which reveals the real point: the lender's maximum is not a recommendation. It's a ceiling computed from ratios that don't know about your childcare, your travel, or your savings goals. Buy at your number, not theirs.
The costs beyond the mortgage
- Property taxes — a significant and varying line around Philadelphia and Montgomery County
- Insurance, and utilities on a whole-house scale
- Maintenance — the old 1%-of-value-per-year rule of thumb exists for a reason, especially in older stock
- HOA or condo fees where applicable
- The cash cushion after closing — moving straight into a paycheck-to-paycheck homeownership is the stress nobody prices in
Should I buy at my pre-approval amount?
Should I buy at my pre-approval amount?
Your pre-approval is the ceiling the math allows, not the budget the life supports. Most of our happiest clients bought under it.
General education, not legal, tax or financial advice. Your contract and circumstances matter. Confirm current requirements with your lender, settlement professional or qualified adviser.