Home Buying Roadmap

The first step in buying a home is understanding your true budget — not just the purchase price, but the full monthly cost of ownership.

Start with your gross monthly income. Lenders typically want your total monthly debt payments (including your new mortgage) to be no more than 43% of your gross income. This is called your Debt-to-Income ratio (DTI). Note: FHA loans allow DTI up to 50% with compensating factors (strong credit, reserves), and VA loans have no hard DTI cap — so your qualifying range may be higher depending on the loan type.

Factor in all costs: Your monthly payment includes principal + interest, property taxes, homeowner's insurance, and HOA fees if applicable. In South Florida, insurance costs are significantly higher than the national average due to hurricane risk — budget $200–$600/month depending on the home.

Get a budget range, not just a number. A $450,000 home at 7% interest with 10% down is roughly $3,200/month all-in. Use Tex's Mortgage Calculator to model different scenarios before you start shopping.

Rule of thumb: Most buyers in South Florida are comfortable at 3–4x their annual income. A household earning $120,000/year is typically comfortable in the $360K–$480K range.