The easiest way to determine how much home you can afford is to speak with a reputable loan officer. By doing so the lender will likely issue you a letter of pre-approval, which will serve as evidence to sellers that you will likely qualify to purchase their home. As always, just because you are qualified to buy up to a certain level doesn’t necessarily mean that you should. Before committing to a purchase run through your finances to determine how comfortable you will be with the eventual payments. Don’t forget to include property tax, homeowners insurance, HOA fees, and other applicable expenses.