Rule of Thumb

Be conservative when planning to purchase a new home or searching for an apartment. Budget no more than 30% of your gross income on a mortgage or rent payment. This leaves room for other debt and living expenses in addition to building a savings fund.

With a good credit rating, your mortgage may be approved at a higher percentage rate. Keep in mind just because it’s been approved doesn’t mean it’s affordable. Live beneath your means to prevent becoming “house poor.”