Mortgages & Financing
How much house can I afford?
By Steve Lockhart
The short answer
The number that matters is the one that leaves you comfortable, not stretched. Lenders describe affordability with ratios, often around 28 percent of gross income for housing and 43 percent for total debt, but those describe averages, not your life.
Full answer
The number that matters is the one that leaves you comfortable, not stretched. Lenders describe affordability with ratios, often around 28 percent of gross income for housing and 43 percent for total debt, but those describe averages, not your life. Your real take-home pay, the debts you actually carry, and the cash you keep after closing matter more than any rule of thumb, and those are the numbers I build a budget from. A Las Vegas mortgage payment includes more than principal and interest: property taxes, homeowners insurance, HOA dues in many communities, utilities, and a real cushion for maintenance all share in the monthly cost. A lender's pre-approval turns the conversation from a range into a number, and that number is a ceiling, not a target. We run the payment all-in before you tour homes, and give the budget room to live, because the house that fits your budget is the house you can stay in happily.
Go a little deeper
Frequently asked
Questions people often follow up on
Is the 28 percent housing ratio a hard rule?
It is a common guideline lenders use to price risk, not a rule about your life. Qualifying ratios do not capture your savings, your health, or what a payment actually feels like. I plan from your real income and your real bills, then let the lender confirm the ceiling on the outside rather than set the number for you.
Should utilities and HOA dues really count in the payment?
Yes. A home with HOA dues can cost more each month than a similar home without them, and utilities in the Las Vegas heat are real money. The honest monthly number includes those costs, so we plan from the full picture and never from the loan amount alone.
My lender says I qualify for more than I planned. Should I use it?
Only if the payment still fits comfortably. Pre-approval is a ceiling computed from ratios, not an instruction to use them all. Buyers who stretch to the ceiling feel it quickly when a repair, a utility spike, or a change at work arrives. We find the price that works for your life and let the ceiling stay above it.
The Lockhart Method
The Lockhart Method
Your Home | My Strategy | Proven Results
My strategy: lock the monthly number before you lock the price. We build the full payment from your real figures, set a ceiling that leaves room to live, and let the pre-approval confirm the plan instead of overriding it.
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