Getting approved for a $600,000 house can feel like the bank just handed you permission to start touring bigger kitchens and nicer neighborhoods. But mortgage approval and home affordability are two very different calculations, and confusing them can leave a household financially stretched for years.
Lenders primarily evaluate whether you appear capable of repaying a loan, while your personal budget must account for everything from groceries and childcare to retirement contributions and vacations. That matters even more when mortgage rates are elevated and everyday ownership costs keep climbing. Before shopping at the top of your approval, it pays to calculate what that $600,000 house would actually cost you.
