Your price range will be determined by the amount of the loan you can qualify for and  the amount of down payment money you have available, given a variety of determining factors. These factor include and are not limited to income, length of employment (usually no less than two years in the same field), credit score, loan-to-value ratio (which depends on the appraised value of the home and the amount of your down payment), and your overall debt-to-income ratio (including amount you intend to borrow to purchase your home).

The basic qualifying ratios for conventional mortgages is 28/36, meaning that you are allowed to spend up to 28% of your gross monthly income for housing expenses -- which include principal, interest, taxes and insurance -- and a total of 36% of your total gross monthly income on both housing expenses and other payments of long-term debt.

Other types of loans such as FHA and VA Mortgages have slightly higher ratios -- up to 29/41 on VA mortgages.

The good news is that you don’t have to worry about figuring all this stuff out on your own! Your buyer’s agent or your local bank, credit union or mortgage broker will help you determine what mortgage amount you can qualify for and your housing price range.

Invaluable services that you get for free!