You buy a house based on your Gross Income. You live your life based on your Net Income. To not be House Poor, it is very important that know what your monthly budget is. You don't want to move into your house and come to the realization that you can't truly afford it. 

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The first thing you need to do is see what you spend your money on and if you can cut back on anything.

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Then you need to decide how much of a downpayment you can afford. Many borrowers still believe that they need to put down 20%. That is true if you don't want Monthly Mortgage Insurance on a Conventional loan, but there are many programs that require much less.

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VA and USDA programs provide 100% financing.

 

Rocket Mortgage has a One+ Mortgage that only requires you to put 1% down.

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Conventional products, HomeReady and HomePossible require a 3% down payment.

 

FHA requires a 3.5% down payment.

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Third, let's talk about it. My Affordability Calculator allows us to see what your payment will be based on your income, the interest rate, the length of the loan, and your down payment.​