A homebuyer should typically be able to afford a home that is 3 to 3.5 times your annual salary (or income). Another general rule is your total monthly expenses (including the new home) should never be above 45% of your gross (pretax) income. For a first time home buyer, we typically recommend for this ratio to be 35% or less. You should always consult with a professional mortgage advisor (not your typical order taker at the bank).  And please remember that not all banks are created equal. Some banks can be great for your day to day banking, but have a reputation as terrible mortgage lenders.  We strongly recommend you to use a local mortgage banker. A mortgage banker will advise you and let you know your qualification, how much home you can afford, what your monthly payments will be and what you should expect throughout the home buying process.

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