Having a realistic picture of your financial abilities will enable you to purchase a home without putting a strain on your bank account. The quickest way to find out how much you can afford is by talking with a mortgage specialist who can pre-approve you for a mortgage. Be careful though! The bank will tell you how much you can afford based on your income and debt but they do not take into consideration other expenses you may incur (e.g. monthly child care expenses, travel expenses, your sudden need for a new vehicle, etc.)

However, you can use the figure the bank gives you to come up with a monthly mortgage payment that is compatible with your personal budget. After all, there is no need to change your lifestyle in order to buy a more expensive home!