The first
question you're bound to ask is, "How much home can I afford?" That depends on
a number of factors:
Where do you want to live? Are you set on a
specific area? Downtown? The suburbs? Acreage in the country?
Your
preferred type of home. Detached? Semi-detached? Condo Apartment?
Townhouse? There are a variety of home styles you will want to
explore.
Your income. After all, it's not just the mortgage you
have to take into account. There are property taxes, utilities, and in some
cases condo fees. As a general rule of thumb, your monthly home-carrying cost
should not exceed 30-35% of your income.
Market conditions. Is it
a Buyer's market Sellers market or balanced market?
There are also
additional costs to keep in mind. It's a good idea to work out exactly what you
want and what you can afford BEFORE you begin the search.