How much can I afford to spend on a home?

It depends on your income, monthly expenses, debts, and how much you want to put toward a mortgage each month. A common rule of thumb is to spend no more than 28–30% of your gross monthly income on housing costs (mortgage, insurance, taxes, HOA fees if any). Lenders will also look at your debt-to-income ratio (DTI) — ideally under 36–43% depending on loan type. Getting pre-approved by a lender is the best way to understand your personal affordability.