Setting your budget

Setting your budget: "The rule of thumb here is to aim for a home that costs about two-and-a-half times your gross annual salary. Use this only as a general guide, though. Many factors can change that equation. If you have significant credit card debt or other financial obligations like alimony or even an expensive hobby, then you may need to set your sights lower.

The size of your downpayment will also determine how much you can afford."