How Much House Can You Really Afford? A Step-by-Step Guide
One of the most important questions to answer before buying a home is: How much house can I actually afford?
It’s not just about what the bank is willing to lend you; it’s about what you’re comfortable paying each month while still living the life you want.
Here’s a clear, step-by-step guide to help you calculate your budget and make confident decisions.
Step 1: Understand What Lenders Look For
Lenders will evaluate your finances based on two key factors:
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Debt-to-Income Ratio (DTI): The percentage of your monthly income that goes toward debt payments. Lenders generally prefer a DTI under 45%, but lower is better.
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Credit Score: Higher scores (typically 620+) help you qualify for better rates and lower down payments.
At Jubilee, our builder partners can connect you with preferred lenders who can quickly help you understand where you stand.
Step 2: Know Your Upfront Costs
Besides your monthly payment, you’ll need to plan for upfront expenses like:
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Down Payment: Depending on your loan, this could be as low as 3–5% of the home price.
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Closing Costs: Typically 2–5% of the purchase price.
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Moving & Immediate Needs: Budget for things like window coverings, appliances, or furniture.
Jubilee’s builders often offer incentives to help with closing costs, upgrades, or even rate buydowns — stretching your budget further.
Step 3: Factor in Monthly Costs Beyond the Mortgage
Your monthly mortgage isn’t the only payment to plan for. Include:
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Property taxes and homeowners insurance (often escrowed into your mortgage)
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HOA dues (if applicable)
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Utilities
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Maintenance and repairs
New homes at Jubilee are designed to be energy-efficient and low-maintenance, which can help keep these costs down compared to older homes.
Step 4: Decide What You’re Comfortable With
Just because a lender approves you for a certain amount doesn’t mean you have to spend to the limit. Consider your lifestyle:
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Do you want to leave room in your budget for savings, travel, or hobbies?
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Are you comfortable with a higher monthly payment if it means living in a neighborhood you love?
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Would you rather choose a lower payment and upgrade over time?
At Jubilee, we offer a variety of home styles and price points, so you can find a home that fits both your budget and your goals.
Step 5: Get Pre-Approved
Once you’ve done your own math, talk to a lender and get pre-approved. This will give you a clear price range and show sellers you’re serious.
Why Jubilee Makes It Easier to Afford a Home
At Jubilee, our builders offer:
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Incentives to lower your upfront and monthly costs
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Energy-efficient, warranty-backed homes that reduce maintenance
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A variety of price points and floor plans so you can find the right fit
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A welcoming community designed for long-term value and wellness
By choosing a home at Jubilee, you can buy smarter and enjoy a home and lifestyle that truly fits your needs.
Take the Next Step
Ready to find out how much home you can afford?
Our team is here to help you explore your options and take advantage of builder incentives to maximize your budget.
Or speak with a Jubilee sales representative today to get started.
