Purchase · 4 min read
The lender approved me for more than I can afford. What should I do?
July 31, 2026 · Written by Bill Egan, NMLS 7342
Short answer
Use the payment you can make in a slow year, not the maximum an automated engine will approve. A pre-approval is a ceiling, not a shopping list. Taxes, insurance, HOA, and repairs sit on top of the loan payment. Tell us the number you actually want to write, and we will size the file to that.
01
Why this comes up
The letter says $600,000 and the household budget only works at $325,000. You asked how much house you can afford and got a ceiling, not a plan. Stretching to the max is the fear.
02
Where this goes wrong
You shop at the max letter. Taxes, HOA, and insurance come in higher. The payment you cannot live with is the one underwriting will still approve. You close house-poor, or you try to downsize mid-contract and the seller will not let you.
03
What we do about it
We size the file to the payment you can make if overtime disappears, not to the maximum an automated engine will approve. Taxes, insurance, HOA, and repairs sit on top of the loan. We will not talk you into the larger number.
04
How to get ready
Write the offer at the payment you live on in a slow month. Count the full housing cost plus a little for repairs. Bring the budget, not just the approval letter. A smaller loan that closes is better than a maxed letter that makes February miserable.