Buying a New Home: How Much Can I Really Afford?
Buying a home is exciting, but it can also feel overwhelming — especially when it comes to figuring out how much house you can comfortably afford. Deciding on your home-buying budget is one of the most important first steps in the process. Whether you’re moving across town, upgrading for more space, or stepping into homeownership for the first time, understanding your budget can give you confidence and keep the process on track.
If you know what you can afford or need assistance in person, connect with Alan Wood – RE/MAX Plus today. We serve Pittsford, NY, and amazing communities in greater Rochester.
Affordability Means More Than Just a Mortgage
Online calculators can help, but they don’t tell the full story. In Rochester, where the cost of living is lower than many big cities yet property taxes and home ages vary, it’s important to look beyond the mortgage. Monthly payments are only part of the picture. Taxes shift from town to town, insurance costs depend on the home’s age and location, and utilities — especially heating — add up during the winter. Older properties may also need extra funds for upkeep, while some newer costs developments sometimes include HOA fees.
A Simple Rule to Start With
A good guideline is to keep monthly housing costs, including mortgage, taxes, and insurance, between 28 and 31 percent of your gross income. A household earning $80,000, for example, should aim to stay under $2,070. The good news? Rochester’s home prices are generally more affordable, so your budget stretches further here than in many larger markets.
Down Payments: Myths & Realities
The idea that you need 20 percent down is outdated. Many Rochester buyers purchase with as little as 3 to 10 percent down, thanks to FHA or VA loans or local programs like the City of Rochester’s Home Purchase Assistance Program. The size of your down payment affects your monthly mortgage and whether you’ll pay private mortgage insurance (PMI) or not.
Creating a Manageable Budget
Start by adding up your monthly income, then subtract (take 38 percent) fixed expenses like car loans, childcare, or credit cards. The remainder gives you a realistic sense of what you can afford for housing. It’s smart to set both an ideal and a maximum payment. And don’t forget to leave room for living — Rochester offers so much to enjoy, from concerts at the Eastman Theatre to summer afternoons by Lake Ontario. A home should fit your lifestyle, not restrict it.
Rochester-Specific Factors to Keep in Mind
Every city has its quirks, and Rochester is no different. Property taxes in Monroe County are above the national average, so compare rates across towns before making decisions. Winters can be costly for heating, especially in older homes. Many city properties are full of charm but may need more maintenance. Commutes also matter: whether you’re working remotely or driving to UR, RIT, or downtown, location plays a role in budget and lifestyle.
Get Pre-Approved Before You Shop
Before browsing listings, talk to a lender and get pre-approved. This not only gives you a clear price range but also shows sellers you’re serious. In competitive areas like Pittsford, Brighton, Park Avenue, or Corn Hill, pre-approval can set you apart. If you are not sure who to call to get pre-approved, give us a call and we can point you in the right direction.
Don’t Forget Closing Costs
Closing costs in Rochester typically run 2 to 5 percent of the purchase price. These can include inspections, attorney fees (required in New York), title services, and prepaid taxes and bank fees. Planning for them helps ensure no surprises when time comes to sign your closing papers.
The Rochester Advantage
Even with the risk of high property taxes, value remains one of the best parts of buying here. Your dollar often goes further, letting you enjoy not just a home but a lifestyle — whether that means hikes at Mendon Ponds, picnics in Highland Park, or exploring Rochester’s abundance of festivals and cultural scene.
Buying With a Plan
Finding your home buying budget is about balancing practicality with comfort. By looking beyond just your mortgage, considering local details, and working with knowledgeable professionals, can set yourself up for success.
If you’re ready to take the next step, schedule a consultation with Alan Wood – RE/MAX Plus to review your budget and get expert advice. Get started today.