Lenders start with debt-to-income, not price
Your maximum loan is driven by how much of your gross monthly income can go toward debt. Conventional loans commonly allow a total debt-to-income (DTI) ratio up to 45%–50% with strong credit and reserves; FHA can stretch further with compensating factors.
That ceiling covers your future mortgage payment plus car loans, student loans, credit card minimums and child support. It does not count utilities, groceries or insurance premiums other than homeowners insurance.
Texas taxes change the math
Texas has no state income tax, but property tax rates in Collin and Denton counties typically run between 1.6% and 2.2% of assessed value. On a $650,000 home that is roughly $900–$1,200 per month before insurance.
See current market rate indices before you model a payment →Because taxes and insurance are part of your qualifying payment, two buyers with identical incomes can qualify for very different prices depending on the school district and MUD/PID fees attached to a neighborhood.
Estimate the impact with our affordability calculator →A worked example
Household income $180,000/yr ($15,000/mo). Existing debts $600/mo. At a 45% DTI the total allowance is $6,750/mo, leaving $6,150 for principal, interest, taxes, insurance and any HOA.
Run this same scenario with your own numbers →With 20% down at a 6.6% 30-year fixed rate and 1.8% taxes, that supports a purchase price in the low $700,000s. Drop to 5% down and mortgage insurance plus a larger loan brings it closer to $620,000.
See what to prepare for pre-qualification →How to raise your number
Pay off a car loan or a card with a high minimum payment — every $100 of monthly debt removed adds roughly $15,000–$18,000 of buying power at today's rates.
Consider a temporary rate buydown or seller-paid points, and ask about lender credits that reduce closing costs so more cash can go to the down payment.
Ask a licensed loan originator which lever helps most →