Buying a home in Las Vegas is an exciting milestone — but before you start touring houses, you’ll want to know exactly how much home you can comfortably afford. With rising prices and fluctuating interest rates, understanding your budget is key to making a smart financial decision.

1. Calculate Your Monthly Income and Expenses

Start by listing your total monthly income and subtracting recurring expenses such as car payments, credit cards, insurance, and utilities. This helps determine your debt-to-income (DTI) ratio — a major factor lenders use to evaluate how much you can borrow.

💡 Pro Tip: Most lenders prefer your DTI ratio to be below 43%, but ideally under 36% for the best loan terms.

2. Factor in Your Down Payment

Your down payment directly impacts your loan amount and monthly mortgage payment. In Las Vegas, the average down payment for a first-time buyer is typically between 3% and 10%. The more you put down, the less you’ll owe in interest over time.

3. Consider Property Taxes, Insurance, and HOA Fees

Beyond your mortgage, you’ll also pay property taxes, homeowners insurance, and (in many communities) HOA fees. In Clark County, property taxes average about 0.64% of your home’s value per year. Make sure these costs fit comfortably into your monthly budget.

4. Use the 28/36 Rule

The 28/36 rule is a common guideline for affordability:

• 28% of your gross income or less should go toward housing costs.
• 36% or less should go toward all debt, including your mortgage.

For example, if you make $7,000 a month, aim to keep your total housing costs under $1,960.

5. Get Pre-Approved for a Mortgage

Before you start house hunting, get pre-approved to find out what loan amount you qualify for. Pre-approval gives you a clear budget range and helps you make a stronger offer when you find the right home.

To learn more about mortgage affordability and budgeting tips, fill out our simple contact form Fill out the form here.

Ready to Find Out What You Qualify For?

Our team at V.I.P. Mortgage, Inc. can help you explore loan programs, estimate your buying power, and find a payment that fits your lifestyle. Contact us today to get started.