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Do this before doing anything else. Head over to your bank and speak with a loan officer. They will help you calculate your debt to income ratio (general rule of thumb, you want your monthly debt to be no more than 40% of your monthly gross income) and give you an approximate idea of the amount of house you can afford.
The affordability of your monthly payments is not determined just by the cost of the home itself. It is also affected by mortgage interest rates, closing costs, and various fees associated with the home-buying process.
When determining your budget for a new home, be sure to calculate your new home expenses after the fact as well.
When buying a house, it’s important to recognize your must-haves. These are non-negotiable qualities of the home that you need in your life. These deal-breakers can make or break your decision to pull the trigger on making an offer.