"How much house would I be able to afford?" Have you ever asked yourself question and are you still looking for the answer? Well, I’ve got the answer for you.

There is not a magic dollar amount you should be searching for regarding the "perfect house". How much house you can afford is as unique as you are; it’s dependent on several factors, like where you are, your monthly income, savings, personal needs, and most importantly, the home-buying plan you have on hand.

The perfect way to purchase a house is the one-hundred-percent-down plan. Sounds odd, isn’t it?! But think how much fun that would be! Don’t borrow money. End of discussion. If I can’t get you to postpone the purchase that long, I strongly advise you start saving a down payment of 20 percent or more, choose a 15-year (or shorter) fixed-rate mortgage, and restrict your monthly payment to twenty-five percent or less of your monthly net income.

You want your newly purchased house to be a blessing, not a bane. If you buy a house with nothing down and a huge monthly payment, you are tantalizing Murphy to move into the spare room. You don’t want Murphy as a housemate – believe me! Slow down and realistically deliberate everything before you jump head-first into making this major buy. If you don’t, you will just be issuing Murphy an open invitation to take over the home.

The following is a short and quick checklist of important questions you should review as you consider how much house you can afford. If you aren’t able to answer YES to the following questions regarding the house you are interested in, then it is not a good move to purchase it now.

- Can I make a minimum of ten percent (preferably 20%) down payment on the house?

- Will I be able to maintain house payments at or less than 25 percent of my monthly net income?

- Will I be able to afford to apply for a 15-year fixed-rate loan?

- Am I working closely with a real estate agent I can be confident with?

Good luck house-hunting!