Start with the monthly number, end with a price range
Lender maximum vs your budget
The short version
A lender approves you based on ratio limits and credit, not on your full monthly life. Childcare, savings goals and commuting costs often do not appear in those ratios. Set your own monthly ceiling first and shop below it, even if the preapproval letter allows more.
Last reviewed against the primary sources listed below.
Costs lenders may not count
- Childcare and tuition.
- Retirement and emergency savings.
- Commuting, utilities and repairs.
Set your ceiling
Work through the CFPB affordability tools before you look at listings.
You asked, we answered
Should I borrow the full preapproved amount?
Not necessarily. Your own budget may support less.
What do lenders leave out of debt-to-income?
Many everyday costs, like childcare, savings and utilities.