What Can You Afford After Reserves and Maintenance?

What is the first decision?

Start with a monthly plan that includes principal and interest, taxes, insurance, association dues, utilities, maintenance, and non-housing obligations. A lender's approval amount is not a household spending plan.

Worked comparison: enter the same taxes, insurance, dues, utilities, maintenance, and reserves for two homes rather than comparing principal and interest alone. CFPB explains that estimated taxes, insurance, and assessments may appear in the total payment and estimated cash to close. A HUD housing counselor can review a household budget, but does not guarantee financing.

Which evidence can change the answer?

Set aside a separate reserve line before selecting a price range. Test a repair, insurance change, moving bill, or job transition in the same worksheet rather than treating savings as down payment by default.

How do you make the decision before the deadline?

Compare two homes by total ownership cost and remaining liquid cash after closing. The better fit may not be the lower list price.

Before deciding about What Can You Afford After Reserves and Maintenance?, what will you document?

Choose the range that leaves the stated reserve after cash to close and recurring ownership costs are entered.