Real affordability includes more than the mortgage, with taxes, HOA fees, and utilities shaping your payments.

If your lender says you can afford a $500,000 home, is that really the right choice for you? In Phoenix, the approved amount often doesn’t reflect how comfortable your life will be after moving in. Affordability isn’t just about the maximum loan. It’s about whether your monthly payment fits your real-life budget.

To get it right, buyers should focus on these three key factors that determine whether a home feels comfortable or stressful.

1. Payment comfort vs. maximum approval. Lenders approve buyers based on ratios, but what really matters is how your monthly cash flow feels. Just because you qualify for a certain payment doesn’t mean it’s comfortable. Going all the way to the top of your approval leaves little room for savings or unexpected expenses.

Smart buyers start with a number they feel good about each month. That should cover your mortgage, insurance, and taxes, while still leaving space for savings, travel, hobbies, and everyday life. Approval shows what’s possible, but comfort is what makes it sustainable.

2. Hidden costs: utilities, HOA, and property taxes. Many buyers overlook recurring costs that are not included in a loan approval.

• Property taxes add a consistent monthly expense, even if they seem modest.

• HOA fees vary by community and can range from minimal to several hundred dollars.

• Utilities, especially summer cooling, can significantly increase monthly costs.

True affordability means factoring in all of these ongoing expenses, not just the mortgage payment.

“The right home supports your lifestyle without stretching your budget to its limit.”

3. Personal affordability. Two buyers with the same income can make very different home choices, and both can be right. One buyer may prioritize location or proximity to work and choose a smaller home with a higher payment. Another may value space, lower monthly expenses, or flexibility, and choose a larger home farther out.

Debt levels, lifestyle preferences, family plans, and risk tolerance all influence these decisions. The right home is the one that supports your lifestyle without stretching your budget to its limit.

Owning a home comes with responsibilities that extend beyond the initial loan approval. Affordability is about balancing comfort, lifestyle, and long-term goals. At Good Company Real Estate, we help buyers navigate this part of the journey. If you want help understanding what you can truly afford in today’s Phoenix market, feel free to reach out at 480-267-9368 or email Office@GoodCompanyRE.com. Getting clear, local guidance helps you make confident decisions and choose a home that feels comfortable long after you move in.