1) Pick your monthly comfort number
A “payment-first” approach helps you avoid stretching later. Consider income stability, other goals (retirement, travel), and an emergency buffer.
- List current debts and typical monthly spending.
- Leave room for maintenance, utilities, and life changes.
- Try a range (e.g., “$2,000–$2,300”) rather than one hard number.
2) Translate payment → price range
Work with a lender or calculator to map your target payment to a price, factoring in interest rate, down payment, taxes, insurance, and HOA.
Variables that move your payment
- Interest rate
- Down payment %
- Property taxes & insurance
- HOA/condo dues (if any)
Quick tip
Ask your lender for a payment table showing how price or rate changes affect your monthly cost.
3) Plan total cash needed (and reserves)
- Down payment: 3–20%+ depending on the loan.
- Closing costs: Typically 2–4% of the price.
- Move-in & setup: Appliances, paint, small repairs.
- Reserves: Lenders may require 1–2 months; consider keeping 3–6 months as a safety net.
4) Rates change-build a buffer
Run scenarios: your budget should still work if rates rise a bit before you lock. Discuss points, buydowns, and adjustable options with your lender.
5) Compare agent proposals to save more
Local, licensed agents on Seeking Agents® can compete for your business. Comparing proposals may lower costs or include buyer incentives.
Ready to shop with confidence? Create your free account and compare agent proposals today.
*Informational only; not legal, tax, or financial advice. Programs and terms vary by market and lender.