#CALCULATE WHAT YOU CAN AFFORD
Many #banks will require that your monthly costs can't exceed a percentage of your income (for example 28%). That means if you earn $50,000 per year, your total monthly #housing costs should not exceed $1166 (28% of your monthly income). Using a #mortgage calculator you can use this number to figure out how much you can afford.
Consider Your #Debts In addition to your income, if you have recurring debts, the total #monthly payments on existing debt plus new payments for your mortgage may not be #allowed to exceed a certain threshold (for example 41%). Using the example #above that would mean that if your monthly #debt #payments are in excess of $541 per month (bringing your total debt of $541 + $1166 = $1708 or 41% in total)
Consider The #DownPayment
Most lenders prefer a down payment of 20% or higher to qualify for a #conventional loan, but there are loan #options where you can put down less. However, you should be aware that with a smaller down payment, you’ll likely be required to pay for #mortgage insurance, and your loan #application will be subject to greater scrutiny.