Shopping for a home is exciting, but one of the first and most important questions you’ll face is: How much house can I actually afford? With housing prices and interest rates shifting, Dallas homebuyers in Fall 2025 need up-to-date guidance. Here’s how to figure out a comfortable budget for your next home purchase.
Step 1: Evaluate Your Income
Lenders typically use the 28/36 rule:
- No more than 28% of your gross monthly income should go toward housing costs (mortgage, taxes, insurance).
- No more than 36% of your gross monthly income should go toward all debts combined (housing, car loans, credit cards, student loans).
Step 2: Factor in Current Mortgage Rates
Interest rates in Fall 2025 continue to influence affordability. Even a small change in rates can shift your monthly payment by hundreds of dollars. Getting pre-approved early helps you understand what rate you qualify for and what that means for your budget.
Step 3: Plan for the Down Payment
A larger down payment lowers your loan amount and may eliminate Private Mortgage Insurance (PMI). While some loans allow as little as 3% down, aiming for 20% gives you more buying power and lower monthly costs.
Step 4: Don’t Forget Additional Costs
Beyond your mortgage, remember to budget for:
- Property taxes (higher in certain Dallas neighborhoods)
- Homeowner’s insurance
- Utilities and maintenance
- HOA fees (if applicable)
Step 5: Consider Your Lifestyle and Future Plans
Affordability isn’t just about numbers. It’s about comfort. Ask yourself:
- Will your income remain stable or grow?
- Do you plan to stay in the home at least 5 years?
- Are you comfortable with the monthly payment if unexpected expenses arise?
Final Thoughts
Your dream home should fit both your lifestyle and your budget. By looking at income, debt, mortgage rates, and long-term goals, you’ll get a clear picture of what’s realistic in Fall 2025.
At The Tuttle Group, we help Dallas buyers crunch the numbers and find the right mortgage to match. Contact us today to get pre-approved and start shopping with confidence.
