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Are you thinking about buying a new home, but not sure how much you can afford? It’s a common concern, and before you take the plunge, make sure you’re comfortable with your monthly mortgage payments. Here are some pointers to help you figure out how much house you can afford:

Begin by making a budget: Figure out how much you can comfortably afford to pay each month for your mortgage, property taxes, and other housing costs. Remember to include the costs of utilities, insurance, and maintenance.

Consider about your income: The more you make, the more you can spend on a property. In general, lenders advise that your total monthly mortgage payments—principal, interest, taxes, and insurance—should not be higher than 28% of your gross monthly income.

Look at your debts: Lenders also take into account your debt-to-income ratio, which is the ratio of your monthly income to the total of all your loan obligations, including your mortgage. A ratio of 36% or less is typically seen as being within reach.

Consider your down payment: The greater your down payment, the cheaper your monthly payments will be and the less money you will need to borrow. There are choices like first-time homebuyer programs that might help you get into a home with a reduced down payment even if you don’t have much money saved up.

Check your credit score: You may be eligible for a lower interest rate and, consequently, smaller monthly payments, if your score is higher. Before you start looking for a home, it’s a good idea to concentrate on raising your score if it’s lower than you’d like.

You may determine how much house you can afford and make a well-informed decision about your home purchase by taking these things into account. Don’t be reluctant to ask a lender for assistance and counsel; they can offer more individualized advice depending on your particular financial position.