Buying a home is probably the biggest purchase you’ll ever make. When pursuing a purchase this large, it’s important to know what kind of mortgage you can afford. Overestimating what you can afford to pay will leave you with a house, but without money to spend on things besides your mortgage. Experts advise spending no more than 28% of household income on a mortgage payment.

Key Takeaways:

Buying a home is most likely the largest purchase you will ever make
The first thing that you should consider when determining how much you can afford is how much you earn
If you have any outstanding debt, you need to take that into consideration, too

“Buying a home is most likely the largest purchase you will ever make. However, many people aren’t clear on how much house they can afford, and may end up overestimating their ability to make payments on their new home and winding up “house poor.””

http://www.nchfa.com/news/how-much-mortgage-can-you-really-afford