Before you start shopping for a new home, you need to determine how much home you can afford.
One way to get started is to get pre-approved by a lender, who will look at factors like your income, debt, and credit, as well as how much you have saved for a down payment, to determine the loan amount you can afford. Can do. ,
A general rule of thumb is to aim for a home that costs about two and a half times your gross annual salary. If you have significant credit card debt or other financial obligations like alimony or an expensive hobby, you may need to narrow your sights.
Another general rule: All of your monthly household payments should not exceed 36% of your gross monthly income.
This calculator can give you a general idea of what size mortgage you can afford.