What price home can Home Buyer afford?
First determine what kind of mortgage a first time Home Buyer can afford. That will help determine what price house you can afford.
Building a budget is no fun,To begin, add up all the monthly expenses other than the house payment.
A simpler way to gauge how much Home Buyer can afford each month is to use a percentage of own income. A general guideline that many lenders use is that no more than 28 percent of Home Buyer's total monthly income should go toward the mortgage payment (including taxes and insurance) and that no more than 36 percent of the total income should go to pay total debt, including credit cards.