How Much Home Can You Afford? A Realistic Breakdown for VA Buyers
So, you’re ready to buy a home in Northern Virginia—but how much house can you actually afford? It’s a big question, and one that deserves more than a quick glance at a mortgage calculator.
At Lighthouse Realty Group, we believe clarity creates confidence. Here’s a practical breakdown of what really determines your buying power—and how to plan for more than just your monthly mortgage payment.
Step 1: Know Your Numbers
Start with your gross monthly income, current debts, and credit score. Lenders use these figures to calculate your debt-to-income (DTI) ratio—a key factor in how much you can borrow. Most lenders prefer a DTI of 43% or less, but lower is better if you want more buying flexibility.
Step 2: Understand the Full Picture of Monthly Costs
It’s not just your mortgage! Be sure to factor in:
Property taxes
Homeowners insurance
HOA or condo fees (if applicable)
Utilities & maintenance costs
A good rule of thumb: Your total housing costs should be no more than 28–30% of your gross monthly income.
Step 3: Account for Upfront Costs
Many buyers are surprised by the upfront expenses, which can include:
Down payment (as low as 3%–5% for many loans, 0% for VA loans)
Earnest money deposit
Closing costs (typically 2–5% of the purchase price)
Inspections and appraisals
We’ll help you budget for all of these, so there are no surprises on closing day.
🏡 Step 4: Shop Within Your Comfort Zone
Just because you’re approved for a certain amount doesn’t mean you should spend that amount. Think long-term: Will your payment still feel comfortable if rates rise or your lifestyle changes?
Our job at Lighthouse Realty Group is to match you with a home that fits your budget and your dreams. That means aligning your financial picture with your goals, lifestyle, and future plans.
Need help figuring out your buying power? We work with trusted local lenders who can walk you through pre-approval and help you find the right loan for your situation. Let’s start the conversation—your home journey begins with clarity.
