Rule of thumb:You can afford a home that costs about 2.5 times your yearly income.
Other factors to consider-
-How much money do you need for other bills?
Such as utilities,doctors,groceries ,car payments,insurance,etc.
-How much do you have for a down payment?
The typical minimun down payment is 3% of the total loan amount.
-How much will you need for closing costs and other payments?
Be prepared to get out your checkbook.There are several costs-along with the down payment- that will arise,such as earnest money,inspection and appraisal fees and insurance binders.
MN.Association of Realtors