Before you look at a single listing, know your three numbers: the most you qualify for, your all-in monthly payment, and the total cash you need to close. Josh puts it plainly. You have to know them, and you have to be comfortable with them. If you can't answer all three with confidence, it isn't time to buy yet. Get the numbers first.
A real pre-approval hands you all three, on paper, for each loan program you're eligible for. Josh treats that comparison as the whole point of the first conversation with a lender: which programs fit you, which one is likely best, and what each looks like with the maximum qualification, monthly payment and total cash to close side by side.
This is the least important of the three, but it gives you a framework. Say you're looking at homes around $400,000. Knowing you could qualify for up to $450,000 gives you a comfort level. When you drive by an open house listed at $385,000, you already know it's within reach.
Everyone is different here. Josh once ran the numbers for a buyer who probably qualified for a $2.5 million home and wanted to spend far less, with a big down payment. The maximum tells you what a lender can approve. What you can comfortably afford is a separate question, and it's yours to answer.
This is one of the two numbers that really matter. At the price you'll actually buy, what does the whole monthly payment come to? That means principal and interest, property taxes, homeowners insurance, mortgage insurance if your loan carries it, and HOA dues if there's an association. Insurance can be a big factor, so get it priced early in the process so it doesn't turn into a negative surprise near the end.
You don't need this number before you start browsing. You do need to know it, and be comfortable with it, before you buy. Most buyers Josh talks to have done their research, and online calculators often run high, so the real number is usually in line or a little better. The calls that go the other way come from someone who assumes their rent and their mortgage payment will match. In most of the country there's a real gap between the two, so get the real figure.
Be comfortable with the payment on the way in. A 30-year fixed rate sets the highest payment you'll have, and there may be windows to refinance lower later, but nobody should buy counting on that.
This is where buyers get caught. Josh hears versions of this often: "We're looking around $400,000. I know FHA is 3.5% down, so I need about $15,000, and I've got $16,000 in checking. We're good." The down payment is only part of the bill. (FHA's minimum down payment is set by FHA guidelines and reflects the episode that aired 8/10/2026; confirm current requirements with a lender.)
Your cash to close includes:
Then look at every way to cover it. Can you negotiate a seller credit? Is a gift from family an option? Knowing the full number early is what lets you plan for it, instead of finding out in escrow that you're $5,000 short with no way to get it. For the full breakdown, see how much money you really need to buy a house.
Leave something in the bank after closing, too. In Josh's words: "It is not a guarantee that you're setting yourself up for failure if you use every nickel on closing day. It is a guarantee that you're setting yourself up for stress."
Josh regularly talks to buyers who say they're pre-approved for $400,000. Then he asks what loan program, what the monthly payment is, and how much cash they need. They don't know. Usually they sent over a few pay stubs and got a number back. That's a quick answer meant to get you out looking at homes, with the details sorted out after you're under contract.
A full pre-approval front-loads the work. The lender confirms your income, what you owe and your credit before you shop, then lays out your three numbers for each option. Josh figures about half the work of buying a home happens there, and when it's done right, almost everything after it is a formality, including writing the offer. More on the difference in prequalified vs preapproved.
Jeb sees this from the real estate side. You get comfortable at $400,000, then you find the house you love at $450,000 or $500,000. Your payment and your cash to close move with the price. Go back to your lender and revisit all three before you assume everything stays the same.
Jeb said it best on the show: "Most of the stress in a home purchase doesn't come from the loan. It comes from uncertainty." Your three numbers remove the uncertainty. They're stage three of our first-time home buyer guide, and they're what Josh's team lays out for you on the Roadmap.
Stop guessing what you can really afford
It starts with a Discovery Call, a straight conversation about your real numbers. Josh and his team show you the price range and loan options that fit, and map out every step to closing. They handle your loan directly, never a referral, so you tour with confidence and write offers sellers take seriously.
Build my Roadmap →Your maximum qualification, your all-in monthly payment at the price you'll actually pay, and your total cash to close. A full pre-approval should give you all three for each loan program you're eligible for.
It tells you what a lender can approve, not what you're comfortable paying. It's still useful as a framework: knowing your ceiling gives you a comfort level when you shop below it.
Your down payment, the closing costs in your area, and prepaid items: interest due at closing plus the property taxes and homeowners insurance that set up your impound account. Seller credits and gifts can help cover it, depending on the loan program.
No, but you need to know it and be comfortable with it before you buy. Get a real figure at your target price that includes taxes, insurance, mortgage insurance and any HOA dues.