Several buyers have recently asked me about how to determine how much they can and should spend on a home purchase.  Those are actually answered differently...

CAN -- How much you *can* spend will best be determined through a conversation with a mortgage lender.  They will evaluate your income, existing required recurring debt payments, credit score, etc., to tell you the maximum that you can spend on a home.

SHOULD -- How much you *should* spend is best determined by calculating what portion of your income you are comfortable spending on housing while still having enough left over for all of your other life expenses.  In other words, a budget! 

I created the budget spreadsheet shown above (download it here) as a starting point for thinking this through.  Let me know if you have questions about how to use this spreadsheet.

 

And let me know if you'd like a recommendation on a local mortgage lender.