What Can I Actually Afford When Buying a Home
(Hint: It’s not just the down payment)
Buying a home is exciting — but let’s be real, it can also be confusing, especially when it comes to the money side. Most buyers assume they need a huge down payment and perfect credit. The truth? It’s a lot more flexible than you think — and a lot easier to navigate when you have the right plan.
If you’re wondering, “How much can I actually afford?” this post is for you.
Understanding Affordability Starts With the Right Lender
Before we even start looking at homes, the best move you can make is to connect with a trusted lender and get pre-approved. This gives you:
A clear understanding of your budget
A realistic monthly payment estimate
Confidence when making offers
A strong position with sellers
Think of pre-approval as your home shopping permission slip. It removes the guesswork and lets us focus on homes that truly fit.
How Much Do I Need for a Down Payment?
This is the question every buyer asks — and good news, you probably need less than you think. Here’s a quick breakdown:
FHA Loan: Minimum 3.5% down (ideal for first-time buyers)
VA Loan: 0% down (for qualified veterans or active duty)
Conventional Loan: Often 3%–5% down for first-time buyers; 10%–20% for others
For example, on a $300,000 home:
3.5% down = $10,500
5% down = $15,000
20% down = $60,000
Down payment requirements vary based on your credit score, income, and loan program — which is why that pre-approval step is so important.
But That’s Not All — What About the Other Costs?
Besides your down payment, you’ll need to plan for:
Closing Costs
These typically range from 2%–5% of the purchase price and cover things like:
Lender fees
Title and escrow services
Recording fees
Prepaid taxes and insurance
Home Inspection & Appraisal
Inspection: $300–$500 (recommended!)
Appraisal: Often required by the lender, around $500
Moving + Setup Costs
Movers, utility deposits, and furnishings
Potential upfront HOA dues, if applicable
In total, many buyers are surprised to learn that with smart planning, they can often buy with less than 10% of the home price upfront — sometimes far less.
So… What Can You Afford?
Everyone’s financial situation is different. That’s why your affordability shouldn’t be based on guesswork — or online calculators that don’t tell the full story.
Instead, we look at:
Your income
Credit score
Current debts
Savings
Desired monthly payment
From there, your lender will help calculate a price range that fits comfortably into your life — not one that stretches you thin.
The Bottom Line: You Don’t Have to Know Everything — That’s What I’m Here For
You don’t have to figure out every detail before reaching out. Whether you’re hoping to buy in a few months or just curious about what’s possible, I’ll help you connect with the right professionals, understand the numbers, and create a smart plan that fits your goals.
You might be closer to homeownership than you think.
Want help figuring out what you can afford?
Let’s schedule a free strategy session — no pressure, just honest guidance.
📞 Call/Text: (760) 608-3257
📧 Email: meganalysejones@gmail.com
🏡 Ridgecrest Real Estate | Megan Jones | Palomino Properties
