It's easy to get caught up in the thrill of the prospect of purchasing a home, but before you begin your search, you must first determine your home-buying budget.
How much can you afford to pay each month on your mortgage?
What does the payment entail in terms of price? These are crucial questions that you must respond to.
Understanding these figures will help you create reasonable, controllable goals and stay on track with your property hunt. Here's how to figure it out.
According to Freddie Mac, no more than 25 percent to 28 percent of your monthly income should go into your mortgage payment.
You may use a mortgage affordability calculator to figure out how much of a monthly payment you can afford and how much house you can buy.
Please keep in mind that this is simply a guess. You should also consider the constancy of your earnings.