How Much House Can I Afford? A Real-World Breakdown

This is usually the first question people ask when they start thinking about buying a home. And it's a good one, but the answer you get from an online calculator and the answer you get from an actual mortgage professional can be very different numbers.

Here's how affordability actually works, what lenders look at, and how to figure out a number that makes sense for your life, not just on paper.

Why Online Calculators Are Only a Starting Point

Type "how much house can I afford" into Google and you'll get a calculator that asks for your income and spits back a number. The problem is those tools are missing most of the picture.

They don't know your credit score. They don't know your monthly debt payments. They don't know what loan program you'd qualify for, what rate you'd actually get, or what property taxes and insurance look like in the specific area you're buying in.

The number they give you might be in the right ballpark. Or it might be off by $100,000. There's really no way to know until someone looks at your actual situation.

What Lenders Actually Look At

When a lender evaluates how much you can borrow, they're focused on a few key factors:

Income. Lenders look at your gross monthly income- what you make before taxes. If you're salaried, this is straightforward. If you're self-employed, hourly, or have variable income like bonuses or commissions, it gets more nuanced. Lenders typically average income over two years, so what you made last year matters just as much as what you're making now.

Debt-to-Income Ratio (DTI). This is the big one. Your DTI is the percentage of your gross monthly income that goes toward your monthly debt payments, including the new mortgage payment. Most loan programs want to see a DTI at or below 50%, though some programs allow higher with compensating factors.

Example: If you make $8,000/month gross and have $400/month in existing debt payments (car, student loans, credit cards), a lender is going to calculate how much of a mortgage payment fits within their DTI limit before you hit the ceiling.

Credit Score. Your credit score affects two things: whether you qualify, and what rate you get. A higher score means better rates, which directly affects how much home you can afford at a given monthly payment. Even a 0.5% difference in rate can shift your buying power by $20,000–$30,000 on a typical Las Vegas purchase.

Down Payment. The more you put down, the lower your loan amount, and in some cases, the better your rate. But putting down less isn't automatically a bad move. Depending on your situation, keeping cash reserves and putting less down can actually be the smarter play.

Assets and Reserves. Lenders want to see that you have enough money to close, down payment plus closing costs, and in many cases, some left over after closing. Where that money is and how long it's been there matters too.

The Real Number vs. The Comfortable Number

Here's something a lot of buyers don't think about: just because a lender approves you for a certain amount doesn't mean you should spend that much.

Lenders approve you based on maximum debt ratios. They're not factoring in your 401k contributions, your kids' activities, your car maintenance, your vacations, or anything else about how you actually live.

A good mortgage broker isn't just going to tell you the maximum you qualify for. They're going to help you figure out what monthly payment actually makes sense for your budget, and work backward from there to a purchase price.

Those are two very different conversations, and the second one is a lot more useful.

A Simple Way to Think About It

Instead of starting with a purchase price, start with a monthly payment you're comfortable with.

What are you paying in rent right now? What would feel like a reasonable increase, or would you want to stay flat? Once you have a target payment in mind, a mortgage professional can tell you exactly what purchase price that payment corresponds to at current rates, with your specific loan scenario factored in.

What This Looks Like in Las Vegas Right Now

In the Las Vegas and Henderson market, the median home price has meant most buyers in the entry-to-mid range are looking at purchase prices between $350,000 and $550,000. Depending on your down payment, loan type, and rate, monthly payments in that range can vary significantly.

Property taxes in Clark County run roughly 0.5–0.8% of assessed value annually. HOA fees are common in the valley and can range from $50 to $300+ per month depending on the community — that's money that directly affects your DTI and your buying power, so it needs to be part of the calculation.

This is another reason why talking to someone who knows the local market matters. A generic affordability calculator has no idea what HOAs look like in Summerlin vs. Henderson vs. North Las Vegas.

The Best Way to Get Your Real Number

Skip the calculator. Get a 15-minute conversation with a mortgage broker who can review your actual income, credit, and debts and give you a real answer.

You'll walk away knowing exactly what you qualify for, what your payment would look like at different price points, and what loan program fits your situation best. No guessing, no surprises.