PRELIMINARY FINANCING HOW
MUCH HOME CAN YOU BUY?
Make a rough estimate of how much home you can afford based on your income and current debt.
Lenders and financial experts recommend that your monthly debts should be no more than 36% of your monthly income. (For a more conservative estimate, this should be based on your take home pay instead of your gross pay.)
If you have additional outstanding debts such as student loans or credit cards, you will need to factor in those monthly payments into your total monthly debt payment. An online mortgage calculator can help you determine your borrowing power at current mortgage rates based on your income and your current outstanding debt, and will likely be the best tool for you to make this initial estimate.
Monthly take Home Income
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