What's Your Price Range? - Understanding Home Prices Based on Your Actual Approval

"We're looking at homes around $875,000," the successful attorney told me during our consultation. Her income was solid, her credit excellent, and she'd been pre-approved for over $900,000. But thirty minutes into our conversation, I had to share some uncomfortable news: her realistic comfort zone was closer to $650,000.

She wasn't happy with me that day. But six months later, when she called to thank me for keeping her out of financial trouble, I remembered why we have these honest conversations. She'd found a beautiful home at $625,000, was still maxing out her retirement accounts, and could afford the family vacations that mattered to her. Meanwhile, her colleague who stretched for an $850,000 house was working weekends and skipping her kids' school events to cover the mortgage.

The Million-Dollar Trap (Or Close to It)

When you're shopping in the $875,000 range, the stakes get higher fast. We're talking about monthly payments that can easily hit $6,000-7,000 when you factor in taxes, insurance, and HOA fees. That's more than many families' entire take-home pay.

But here's what happens: you see that gorgeous kitchen with the marble countertops, the master suite with the spa-like bathroom, the three-car garage in the perfect neighborhood. Suddenly, that monthly payment feels like just a number on paper. Until it's not.

Think of it like this: buying a home at your maximum approval is like running a marathon at your absolute fastest pace. You might make it to the finish line, but you'll be exhausted, stressed, and probably hate the experience. Smart runners pace themselves so they can actually enjoy the journey.

What $875,000 Actually Costs You

Let's break down the real numbers on an $875,000 home purchase:

Monthly mortgage payment (assuming 10% down): Around $5,200 Property taxes (varies by area): $600-1,200/month Homeowners insurance: $200-400/month PMI (if less than 20% down): $400-600/month HOA fees (if applicable): $200-800/month Basic maintenance and repairs: $600-1,200/month

Total monthly housing cost: $7,200-9,400

That's $86,400-112,800 per year just to keep the lights on and the roof over your head. To afford this comfortably, you'd need a household income of around $300,000-350,000 annually—and that's assuming you have no other significant debts.

The Real-World Reality Check

Let me tell you about David and Sarah, a couple who came to me last year. He's a successful engineer, she's in medical device sales. Combined income: $285,000. They were pre-approved for $900,000 and had found their "perfect" house at $875,000.

When we sat down with their actual budget, here's what we discovered:

• Take-home pay after taxes and benefits: $16,800/month

• Student loans: $1,200/month

• Car payments: $800/month

• Childcare: $2,000/month

• Other fixed expenses: $2,800/month

• Retirement contributions: $2,500/month

• Emergency fund contributions: $500/month

  
  

That left them $7,000 for housing—barely enough for that $875,000 home, with zero buffer for life's surprises.

The reality? They found an incredible home at $650,000 in a neighborhood they'd initially overlooked. Same school district, similar amenities, but $2,000 less per month in housing costs. That extra money? It's funding their kids' college accounts and allowing Sarah to cut back her travel schedule.

The Hidden Costs of High-End Homes

When you're in the $875,000 range, everything costs more:

Utilities: That 4,000-square-foot house with vaulted ceilings and floor-to-ceiling windows might cost $400-600/month to heat and cool, versus $150-250 for a smaller home.

Maintenance: Premium finishes require premium care. That custom hardwood flooring, high-end appliances, and complex HVAC systems don't fix themselves cheaply.

Property taxes: Higher home values mean higher tax bills. In some areas, you're looking at $10,000-15,000 annually.

Insurance: Expensive homes require more coverage, especially if you have luxury finishes or high-end belongings.

Lifestyle inflation: Somehow that $875,000 home makes the $50,000 kitchen renovation and $20,000 landscaping project seem "reasonable."

The Questions Nobody Asks (But Should)

Before you fall in love with that $875,000 listing, ask yourself:

What happens if one of us loses our job? In dual-income households earning $250,000+, both careers are usually demanding. Can you survive on one income if needed?

Are we sacrificing our future for our house? If you're cutting retirement contributions or eliminating emergency savings to afford the payment, you're borrowing from your future self.

What are we giving up? Maybe it's family vacations, date nights, or the ability to help aging parents. Make sure you're comfortable with the trade-offs.

Is this about the house or about image? Be honest—are you buying the home you need, or the one you think you should have?

Finding Your Sweet Spot in the Higher-End Market

The right price range isn't about maxing out your approval—it's about finding the intersection of what you want and what lets you sleep soundly at night.

For most families shopping in the $875,000 range, the comfortable zone is often $100,000-200,000 lower than their maximum approval. That might mean:

• A slightly smaller home in the same neighborhood

• The same size home in a different area

• Fewer premium upgrades initially (you can always renovate later)

• A home that's 90% of your dream instead of 100%

  
  

The Landry Difference: Protecting Your Financial Future

We've worked with plenty of high-earning families who could technically afford $875,000+ homes. But our job isn't to see how much mortgage we can get you approved for—it's to help you make a decision that serves your family's long-term financial health.

Sometimes that means having tough conversations about realistic budgets. Sometimes it means exploring different neighborhoods or home styles. And sometimes it means celebrating when you find that perfect home at $650,000 that lets you keep funding your other life goals.

Because the best home isn't the most expensive one you can qualify for. It's the one that fits your life, your budget, and your future—leaving you room to build wealth instead of just paying bills.

Ready to have an honest conversation about what you can comfortably afford in today's market? Let's look at your real numbers and find a price range that supports your family's long-term financial success, not just your approval letter.