What we want and what we can afford may sometimes be a different story. We may want the most expensive lake home in our neighborhood or the log cabin of our dreams, our budget may not be on the same page with us. So, when looking for that next piece of property to purchase, a necessary question to ask is, “How much can I afford?”

According to bakrate.com your monthly payments should not equal more that 36% of your monthly income. This figure doesn’t only factor in your mortgage payment but all payments, like credit card, student loans, car loans etc. Taking on too large of a payment will put a strain on your budget and make other things, like saving for retirement or your kids college education more difficult. Take a look at these articles for more info on helping you determine how much home you can afford for your next purchase:

1.) Bank Rate

2.) Dave Ramsey

3.) Zillow

4.) Consumer Reports