NOW THAT YOU KNOW WHAT YOU'RE LOOKING FOR, THE NEXT STEP IS FIGURING OUT WHAT TYPE OF HOME YOU CAN AFFORD. A REVIEW OF YOUR INCOME, SAVINGS, MONTHLY EXPENSES AND DEBT WILL BE NECESSARY. EARLY IN THE PROCESS, YOU'LL WANT TO GET PRE-QUALIFIED FOR A MORTGAGE LOAN. IT ENABLES YOU TO MOVE SWIFTLY WHEN YOU FIND THE RIGHT HOME, ESPECIALLY WHEN THERE ARE OTHER INTERESTED BUYERS. IT ALSO INDICATES TO THE SELLER THAT YOU ARE SERIOUS AND CAN AFFORD TO BUY THE PROPERTY. A PRE-APPROVAL IS A SIMPLE CALCULATION DONE BY A MORTGAGE LENDER THAT TELLS YOU THE AMOUNT YOU'LL BE ABLE TO FINANCE THROUGH A LOAN AND WHAT YOUR MONTHLY PAYMENT WILL BE.

the price you can afford to pay for a home will depend on several factors, such as:

Gross income

The funds you have available for the downpayment. closing costs and cash reserves required by the lender

Your debt

Your credit history

The type of mortgage you select

Current Interest rates