This is a common, yet very important question. Before you start looking for homes, you need to have some idea of what you can afford. Lots of people don't even consider buying a home because they're afraid they can't afford it, but for many, home ownership is as affordable as renting ? in some cases even more affordable. As a general guide, you can purchase a home with a value of two to three times your annual household income, depending on your savings and debts.

There are several ways to gauge how much you can afford to spend on a house. But, before you go house-hunting, get pre-qualified for a mortgage so you'll know in what price range you can shop. It is not unusual for first-time buyers to be somewhat baffled about how to estimate what mortgage payment they will be able to handle each month, plus how much money they'll need for a down payment and closing costs.

For real estate agents, time is money. We qualify our purchasers so that we only show houses that meet their needs relative to space, features, and price range. Anything else is a waste of everyone's time including yours.

Answer: You can even apply for a prequalification form from a bank by phone, in person or online. This process will demonstrate your borrowing power and the amount that you can afford. Advice: If you are planning to purchase a property, you should set up a savings account to afford the closing costs.

When viewing the home plans detail sheet you will notice an average cost to build at the bottom of the page. The US Census Bureau bases these figures on average construction costs provides these calculations. These are rough estimates and cannot substitute meeting with a home builder with a full set of home plans and establishing a budget for all areas of the home.