06/04/2026
Your lender approved you for $600,000. That number is not a target. It is a trap.
Let me explain how good people end up broke in a house they love.
The bank runs your debt-to-income ratio and spits out a max. Most agents take that max and start showing houses at the top of it. The buyer sees the dream home. They stretch. They sign.
Six months later they are house poor. Here is exactly how it happens.
The payment is only the start. On a $600,000 home you are not just paying principal and interest. Add property taxes. Add homeowners insurance, which has jumped hard the last few years. Add PMI if you put down less than 20%. That is your real monthly number, and it is hundreds more than the quote you got excited about.
Then the house starts asking for money. Water heater goes. That is $1,500 to $2,500. HVAC dies. That is $7,000 to $12,000. Roof needs work. Now you are talking real money. A good rule is to set aside 1% to 2% of the home value every year just for maintenance. On a $600,000 home that is $6,000 to $12,000 a year you did not budget for.
Then life keeps moving. Furniture for rooms that are empty. A higher power bill because the house is bigger. Lawn care. The commute you did not price in.
None of these show up on the loan estimate. All of them show up in your bank account.
Here is what I tell my buyers. Do not buy at the top of your approval. Buy at the top of your comfort. Take your real monthly number, every line of it, and make sure it sits at or below 28% of your gross income. Then look at what is left. If there is no room to save, no room to invest, no room to breathe, that is not a home. That is a monthly hostage situation.
The best house is not the most expensive one you can qualify for. It is the one that still lets you live your life after you own it.
Get pre-approved. Then ignore the top number and pick your own.
Follow for the real math behind buying a home, before you sign anything.
