BUY VS RENT - A Calculator
Although renting gives the advantage of not having to worry about maintenance and other financial obligations associated with owning property, home ownership offers tax benefits as well as the freedom to make decisions about your home. Unlike renters, homeowners who secure a fixed-rate loan can lock in their monthly housing costs. Even if, in some markets, your mortgage payments would be greater than rent for a comparable property, the tax breaks available to homeowners can make the cost of owning a home lower than the cost of renting. To calculate if you should buy or rent, click here.

KNOW WHAT YOU CAN AFFORD
This primary rule of home buying depends on how much income and debt you have. In general, lenders don't want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts.
The price you can afford to pay for a home will depend on 7 factors:
1 gross income
2 the amount of cash you have available for the down payment
3 closing costs and cash reserves required by the lender
4 your outstanding debts
5 your credit history
6 the type of mortgage you select
7 current interest rates

The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent -- and still promptly make the payment each time -- has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant's income. Other real estate experts tell borrowers facing rejection to compensate for negative factors by saving up a larger down payment. Mortgage loans requiring little or no outside documentation often can be obtained with down payments of 25 percent or more of the purchase price.

To determine how much you can afford, use this calculator.

DETERMINE MONTHLY PAYMENT
The question I hear from Buyers most often concerns the amount of their monthly payment. Find out how much your monthly payment will be - based on your target purchase price - click here for this calculator.