Buyer's Budget & Reserve Planner
The approval number is the ceiling. Build the budget you'll live in - with a reserve that survives an older-home surprise.
Buying and First-Time
What this article helps you decide
> Lenders approve on ratios; life runs on cash flow. Eastside buyers stay comfortable by budgeting for the things approvals ignore - maintenance on an older home, and a reserve a roof or sewer repair won't wipe out.
Work through the decision in order
Fixed housing
Mortgage, property tax, insurance, HOA/dues.
What approvals ignore
Maintenance reserve (older Eastside home → top of range; see M10); utilities (PSE); commute.
Safety net
Post-close reserve (several months of full housing cost); sinking fund for the known first repair (older homes: roof/sewer/drainage).
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Buyer's Budget & Reserve Planner
Use the worksheet without a form. Keep your notes in this browser, then bring the live facts into a Real Estate Review if the decision still matters.
Questions about Buyer's Budget & Reserve Planner
Clear answers first. If one question changes the deal, bring it into the review before you move money.
Q1Why shouldn't I buy at my approval number?+
Lenders approve on ratios; you live on cash flow. The approval is a ceiling that ignores maintenance, utilities, and commute. Buying at the ceiling is how comfortable incomes end up house-poor.
Q2What's a realistic maintenance reserve here?+
About 1% of home value a year on newer homes, 2–3% on older ones. On an older home that range is the difference between a roof or sewer repair being an annoyance and being a crisis.
Q3How big should my post-close reserve be?+
Several months of full housing cost (mortgage, tax, insurance, HOA) that survives closing — and on jumbo loans the lender often requires 6–12 months PITI anyway. Keep it fatter on an older home, where the first repair is a matter of when, not if.
Q4What real costs do approvals ignore that I should add?+
Maintenance reserve, utilities (PSE), commute cost, and a sinking fund for the known first repair. Add these to the payment to get your true monthly — usually well above the quoted payment.
Q5How do I know a target price is actually comfortable?+
If the true monthly plus a healthy reserve fits your cash flow, you're buying within your life, not just your approval. If it only fits by zeroing the reserve, the price is too high.
Q6Older home versus newer — how does the budget change?+
Keep the reserve and maintenance line at the top of the range on older homes and earmark a sinking fund for roof, sewer, and drainage. The purchase price is the same math; the ownership cost isn't.
Q7I want a second opinion on a target price — what's next?+
A Real Estate Review pressure-tests whether the number is comfortable against your actual cash flow, not just the lender's ratios.
Apply the article to the live decision.
Want a second set of eyes on whether a target price is comfortable? That's the core of a Real Estate Review.
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