Home prices have been climbing, which may make it challenging for middle-class families to buy a home and build stability. With the national median home price around $423,000 as of May 2025, we believe it’s important to approach buying with a clear plan. As financial advisors helping families, we see how smart choices can make a difference. Here are three recommendations for home buyers to consider.
1: Get the Down Payment Right. Your down payment should help keep monthly payments affordable without using up your emergency savings. Avoid dipping into that fund to lower your mortgage – if you’re considering it, the house might be too expensive for your budget.
2: Check Your Debt Ratio. A home purchase changes your overall debt picture. Calculate it like this: (house payment + car payment) divided by total income. Aim to stay under 30% total, and around 20% or less for the house alone. This keeps things manageable and helps with loan approval.
3: Plan for Maintenance Costs. Homes need upkeep, and issues like a broken HVAC or leaky roof may hit your wallet hard. We believe they’re bound to happen eventually. We recommend keeping aside 1% of the home’s value each year for repairs – for a $400,000 home, that’s $4,000. Include this in your budget from the start.
Following these rules may help you buy a home that fits your life without added stress. Reach out for personalized advice – we’re here to help.
References
- National median home price: National Association of Realtors (NAR) Existing-Home Sales Report, June 23, 2025. https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-0-8-increase-in-may
- Debt ratio guidelines: PNC Insights, “Debt-to-Income Ratio for a Mortgage: What Buyers Should Know,” July 10, 2025. https://www.pnc.com/insights/personal-finance/borrow/debt-to-income-ratio-why-is-it-important.html (Note: General industry standard is 28/36 rule; the 20/30 figures are conservative recommendations.)
- Home maintenance budget: Fannie Mae, “How to Build Your Maintenance and Repair Budget.” https://yourhome.fanniemae.com/own/how-build-your-maintenance-and-repair-budget