BUYING BASICS

Buying a new home is probably the largest financial decision you will make in your life. Whether you are a first-time homebuyer or a seasoned veteran, you need to carefully weigh all the options before making a decision. But the most important factor is: how much house can I afford? As a rule of thumb, you can afford a house that costs 3x your annual income, but factors such as credit score, existing debt, and cash for down payment will affect that price.