Many first time homebuyers are so excited about purchasing their first home that they fail to take into consideration how they will pay for this home in addition to their other bills and living expenses. The Department of Housing and Urban Development (HUD) advises that homebuyers should purchase a home that will cost no more than thirty-one percent of their gross monthly income. Of course, other variables must also be taken into consideration when deciding how much you can spend for your home.
For more read, “Buying a home begins with knowing your finances.”