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Ask the Lender – How Much Home Can I Afford?

Deanna Bowman NMLS# 1031822

Thinking about buying a home? It’s crucial to be realistic about what you can afford. “The best time to consider this is early in the research process,” states Deanna Bowman, branch manager and retail lender at CNB’s Celina office. “Factor in your current expenses, then add in the new expense of a mortgage payment. A mortgage payment includes the principal and interest to repay the loan over 15-30 years. Remember to also include other costs of homeownership like real estate taxes, homeowner’s insurance, utilities, and HOA fees.” By totaling these expenses and dividing by your income, you’ll know what percentage of your income you need for a home purchase. If this number is higher than what you’re comfortable spending each month, you may need to reconsider the size or location of your desired home. Alternatively, saving more for a larger down payment can reduce monthly mortgage payments.

Citizens National Bank’s website offers helpful calculators for reviewing payment scenarios, determining maximum mortgage amounts, and deciding whether to buy now or keep renting. They’re all available at

“Be realistic about your finances prior to working with a realtor and touring homes. Also, get pre-approved through the bank before home shopping to show sellers you’re serious and increase the likelihood of your offer being considered.”

For more tips on purchasing a home, check out our Beyond the Rate video series on our YouTube channel –

While we trust you’ll find value in this content, it’s important to view it as a starting point. For personalized guidance tailored to your unique circumstances, we strongly advise consulting with a qualified professional who holds the necessary licenses. This article, along with any associated resources, should not be interpreted as legal or financial advice. While efforts were made to ensure accuracy at the time of preparation, we cannot guarantee its current relevance.

Citizens National Bank does not warrant or represent the accuracy, applicability, completeness, or suitability of the information provided. Citizens National Bank explicitly disclaim any responsibility for the use or misuse of these materials. By accessing this site, you agree to absolve Citizens National Bank from any associated liabilities. Exercise caution and seek professional advice before making any financial or legal decisions based on the information provided here.

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