Evaluate how much you can pay

Read these steps to see how to determine a housing budget that’s comfortable for you.
  1. Review your monthly spending plan and identify non-essential spending.
  2. Calculate how large a monthly mortgage payment you could make.
  3. Decide how large a mortgage payment you are willing to make.
  4. Determine how much money you’ve saved for a down payment and closing costs.
  5. Talk to a home mortgage consultant about financing options that fit your needs.

Note: To determine your homebuying power, multiply your gross annual income by 2.5 to estimate a top purchase price, or by 28% and divide by 12 to estimate the upper limit for your monthly housing expenses.

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