×

Go Back

Advice Topics

Top Contributors (View All)

Find a Top Real Estate Agent Near You

Search Now

How much can I spend on a house?

How do I figure out how much I can really spend on a house? I got pre-approved for an amount that seems like way too much money. I can put 20% towards a down payment. And I am afraid that if I spend the pre-approved amount that I won't be able to make my monthly payments. So, how do I figure out home much I can really spend on a house?
Asked By Emma | Boston, MA | 623 views | Buying | 7 months ago
Answer(8)
Sort By:
profile img
Pro
116 Answers
Jason Craig

Coldwell Banker

Pre-approval is just the max the bank will lend—it doesn’t mean you should spend it. A good way to find your number is to look at what you’re comfortable paying now and then add in things like taxes, insurance, and maintenance. For example, in towns like Westwood and Norfolk, property taxes can easily add $600–$800 a month depending on the home, and that’s on top of the mortgage. Many of my clients choose well under their approval so they can enjoy their home without feeling “house poor.”
profile img
Pro
108 Answers
Julianne Clark | Your Lowcountry Compass

Charter One Realty

(47)

You need to contact a mortgage lender to answer these questions. They will ask you questions about your financial situation, employment, credit and income. Afterward -- you will have a better idea if and what you can afford. There is not fee for this service. If you do not want to talk to a person -- I would imagine there are some websites to help with determining preapproval amount and online lenders as a starting point. At some point you will need to make that phone call.

Are you ready to find a top agent near you?

Browse profiles of the highest ranked agents in your area and find one that meets your specific needs.

Search
profile img
Novice
8 Answers
Chris Doherty

Doherty Properties LLC

(58)

When a lender gives you a pre-approval, it’s usually for the maximum you can qualify for on paper, not necessarily what you’ll be comfortable paying each month. A better approach is to work backwards from your budget:

First, Aim to keep your monthly housing costs (mortgage, taxes, insurance, HOA if any) around 25–28% of your gross monthly income.
Second, Factor in property taxes, homeowners insurance, and maintenance, not just the mortgage.
Third, With 20% down, you’ll be in a strong position, but choose a price that leaves room for savings, retirement, and lifestyle goals.

Bottom line: Don’t shop at the top of your pre-approval. Shop at the number where your monthly payment feels manageable and still allows you to live the life you want.
profile img
Novice
6 Answers

Getting pre-approved doesn’t mean you should spend the full amount. Lenders calculate what you can afford, not what’s comfortable. To figure out what you can really spend, start with your monthly budget and decide what payment feels manageable — including taxes, insurance, and maintenance.

Aim to keep housing costs under 30% of your gross income, even if you’re putting 20% down. Use a mortgage calculator or ask your lender to match a purchase price to your ideal monthly payment.

The key is: Buy based on your lifestyle, not the bank’s limit.

Would you like help estimating what price point matches your ideal monthly payment?
profile img
Novice
6 Answers
Person+ Person

William Raveis Real Estate

(15)

The Massachusetts Homebuying Circus
Home prices: The state's average price is $658,400—just enough to make you wonder if you can Airbnb your garage to pay the mortgage.

Median sale price: $686,700... because apparently, everyone is trying to move here for the lobster rolls or Dunkin’ Donuts proximity.

Boston: Average price is $739,121, but median listing is $895,000. For that, you get premium access to potholes, Red Sox traffic, and aggressive squirrels.

Worcester: $443,717—affordable (relatively), and you might even find a house that comes with working pipes and a mysterious stain in the basement.

Market Mayhem
Houses sell in under 40 days, which is less time than it takes to binge-watch “The Office” and have a mild existential crisis.

Over 40% of homes go for above list price—bidding wars here are the adult version of musical chairs, but with more paperwork and tears.

Buyer Survival Tips
Plan to spend $450,000–$900,000. If you want to live near Boston, add a few extra zeroes or get really comfortable with roommates who collect Fabergé eggs.

Property taxes, closing fees, and repairs: Because nothing says “welcome home” in Massachusetts like a surprise tax bill bigger than your wedding.

Bottom line: In Massachusetts, houses cost a lot, but the stories you'll get from house hunting and negotiating will make you laugh, cry, and maybe reconsider van life
profile img
Novice
1 Answer
Rachel Warren

Remerica United Realty-Brighton

(45)

The best way to know is to talk to a local lender to help you determine the best purchase price for your budget, Since this is based on a number of factors, they are best equipped to assist you with this.
profile img
Novice
1 Answer
Stewart Woodward

Real

(3)

When determining how much you can truly afford for a home, look beyond your pre-approval amount and focus on your monthly budget. Financial experts recommend that your monthly mortgage payment should not exceed 25-30% of your take-home pay, which includes principal, interest, property taxes, and homeowners insurance. Consider your other monthly expenses like utilities, car payments, groceries, and savings goals to ensure you're comfortable with the potential mortgage payment. The best first step is to contact a lender or mortgage broker to discuss your specific financial situation, as they can provide personalized guidance tailored to your unique circumstances and help you make the most informed decision. I hope this information is helpful in your home-buying journey!
profile img
Novice
1 Answer
Dianne Needle

REAL BROKER MA LLC

(106)

That’s a really smart question and one I hear often from homebuyers across the Boston suburbs. Getting pre-approved is a great first step, but lenders usually approve you for the maximum amount you qualify for on paper, not necessarily what’s comfortable for your lifestyle.

To figure out how much you can really afford, start by looking at your monthly budget, not just the loan amount. Consider what you want left over after paying your mortgage, property taxes, insurance, and utilities: things like savings, travel, or kids’ activities. Many of our clients in Sharon, Canton, and Milton, MA choose to buy well below their pre-approval so they can live comfortably and still enjoy their home.

I always recommend working with both your Realtor and lender to run different “what-if” scenarios for example, what would your payment look like if you spent $50,000 less? Understanding that range helps you buy with confidence and peace of mind.

Related Questions

Search for Agents by Top U.S Cities
Search for Agents by States
Search for Company by States