If you're thinking of buying a home, you've come to the right place. This web site can turn you into a house-hunting master. But before we jump right in, you have to make sure three things are ready. You, your bank account, and the real estate market.

Few joys can match the pride of owning the roof over your head, but you will have to make some sacrifices. There's the obvious financial responsibility, but your home will also require constant care. That's what real pride of ownership is all about.

Your first home will be the biggest financial obligation you've ever faced. You should already be an experienced saver, and good at managing debt like student loans or credit cards. Ideally, you've also saved up some money for a down payment. Our next step will give you a crystal clear picture about How much you can afford

Markets go up, markets go down and even the smartest experts can't accurately predict when a market will peak or bottom out. If you're buying a home as a long-term investment (and for long-term enjoyment), you should be protected from short-term changes in the market. Over time, real estate has almost always increased in value.

All you have to do is pick a home that meets the needs of you and your family. Then you'll enjoy living in your investment as it grows in value. A home is one of the best financial decisions you can make. If you're trying to compare what's the better investment, a home or equities and the stock market - remember, it's tough to live in a stock portfolio!

Tip 2.  FIGURE OUT HOW MUCH YOU CAN AFFORD

Before you start looking for your dream home, let's find out how big you can dream. Knowing your true budget is the first and most important step in buying a home. Why?

It's probably the most expensive thing you'll ever buy, and there are lots of expenses you might not even know about.

Everybody's total costs are different, but it's almost guaranteed you won't have that much money saved up. Hopefully you have enough for a nice down payment, but for the rest...

The first step in determining how much a bank will lend you is to understand how much you can afford each month.  This is determined using two lending principals.

The first lending principle is that your monthly housing cost should not exceed 32% of your gross monthly family income. This principle is known as the Gross Debt Service Ratio (GDSR) calculation. The second lending principle used, the Total Debt Service Ratio (TDSR) calculation, is that your monthly housing cost and payments on all of your other debts (including loans, credit card and lease payments) should not exceed 40% of your gross monthly income.

Our Income Calculator will help you easily estimate your maximum affordable mortgage payment of principal and interest.  All you need to do is enter your monthly income and expense amounts and the calculator will do the rest.

Once you have used the Income Calculator to estimate your maximum monthly total, you can compare this number to the mortgage payments for specific loan amounts.  Simply enter the loan amount in our Mortgage Calculator and the monthly principal and interest will be figured out for you.