Think You Can’t Afford to Buy a Home? Find Out Before You Assume

If you’re paying $1,800 a month in rent, have you ever wondered what that same monthly housing budget might look like if you owned a home?
I talk with people who would love to own a home someday, but they’ve already decided they can’t afford it.
Sometimes they’re right. Sometimes renting makes more financial sense for their situation.
But sometimes they’ve simply never asked.
Your Rent Payment May Be Worth a Second Look
Let’s say you’re currently paying $1,800 each month in rent.
That does not mean you can automatically afford an $1,800 mortgage payment. A homeowner’s monthly housing costs can include principal and interest, property taxes, homeowners insurance, mortgage insurance and possibly HOA fees.
But if you’re already comfortably making a substantial rent payment every month, I think it’s worth asking:
“What would homeownership actually look like for me?”
You may be surprised by the answer.
You May Not Need 20% Down
One of the biggest misconceptions I hear is that you need a 20% down payment to buy a home.
That’s simply not true for every buyer.
Depending on your qualifications and the property you’re purchasing, there are loan programs that allow considerably smaller down payments. Some eligible buyers and properties may even qualify for programs with no down payment.
A knowledgeable lender can explain which programs may be available to you and what they would actually cost.
Your Credit Doesn’t Necessarily Have to Be Perfect
Another reason people rule themselves out is their credit.
Good credit can certainly help when obtaining a mortgage, but you don’t necessarily need a perfect credit score to qualify.
And even if you’re not ready today, speaking with a lender can help you understand what you may need to work on.
Maybe it’s improving your credit score.
Maybe it’s paying down a particular debt.
Maybe it’s saving a little more money.
I’d much rather know what the goal is than spend another year assuming it’s impossible.
Owning a Home Comes With Additional Responsibilities
I also don’t want to make homeownership sound cheaper or easier than it really is.
When you rent and the water heater quits, you generally call the landlord.
When you own the house, you’re the landlord.
Homeowners need to plan for repairs, maintenance and unexpected expenses. That’s part of determining whether buying makes sense—not just whether you can qualify for the loan.
But Homeownership Can Offer Something Rent Doesn’t
When you make a rent payment, you’re paying for the right to live in the property for another month.
When you own a home, part of your mortgage payment generally goes toward paying down the principal balance on your loan. Over time, that can help you build equity in your home.
Home values can rise or fall, so homeownership isn’t a guaranteed investment. But for many people, owning a home becomes an important part of building long-term financial stability.
And there’s another benefit that’s harder to put a dollar amount on:
It’s yours.
You can make it your home, put down roots and make decisions about the property that renters often can’t.
Renting Isn’t Wrong
This is important.
I’m not saying everyone who rents should buy a house.
There are plenty of situations where renting makes sense. Maybe you’re planning to move soon. Maybe you don’t want the responsibility of maintaining a home. Maybe you’re working toward other financial goals.
Buying a home should make sense for your life and your finances.
But if you would like to own a home and the only thing stopping you is the belief that you can’t afford one, don’t make that decision without getting the facts.
Start With a Conversation, Not a House
You don’t need to start by scrolling through homes for sale.
Start with a lender.
Ask:
“Based on my income, credit, debt and savings, what could I realistically afford?”
Then look at the total monthly payment, not simply the price of the house.
You might discover you’re not quite ready—and that’s okay. Now you’ll know what you need to do to get there.
Or you might discover that homeownership is closer than you thought.
Find Out What’s Possible
If you’re currently renting in Smithville, DeKalb County or the surrounding Middle Tennessee area and have wondered whether you could buy a home, I’d be happy to help you take that first step.
I can connect you with a lender who can explain the numbers, and once you know what you’re comfortable spending, we can determine what homes may be available within that budget.
Don’t assume you can’t. Find out.
No pressure. No obligation to buy a house.
Just good information so you can decide what’s right for you.
Betsy Smith, REALTOR®
Better Homes & Gardens Real Estate Town & Lake
📞 615-828-8396