Your loan size will determine what price of houses you should shop for
The less debt that shows up on your credit report means you will qualify for a higher loan and; therefore, be able to purchase a bigger, better house. Using your income and your expenses, your lender will calculate the maximum size of a loan for which you will be eligible. This will give you a good idea of the type of house for which you will be shopping.
Remember that your total monthly housing payment will include your mortgage payment, taxes, and insurance.
For example, if your total housing debt allowed is $1,700 per month, and you find a condo that includes HOA dues of $300.00 per month, that only leaves $1,400.00 for your mortgage, taxes, and insurance.
Read more in our book, "Buy Your First Home", http://tinyurl.com/dy2wjx4.
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