One of the first steps in looking for a new home is to determine how much house you can afford. Typically, the rule of thumb is that debt payments should not exceed 36% of your gross income. If you have credit card debt or other loans, those monthly payments will count against you when determining how much house you can afford. Alternatively, saving money and producing a larger down payment can go a long way to reducing you overall payments.
To determine how much house you can afford, you should use out affordability calculator. Feel free to check your affordability status using your current finances, or play with the numbers until you know what financial position you need to afford the home of your dreams.
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Monthly Debt and Obligations Should Include: