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2. Calculate How Much House You Can Afford

Everyone has a unique financial situation, so there's no one-size-fits-all answer, here. However, making sure your home fits your budget is critically important. In general, it is best to avoid a monthly mortgage amount that is over 28 percent of your monthly income. It's also a good idea to only look at houses that are at most two to three times your annual income. If you're not sure what you can afford, consider a trial run where you save up all the money you'd spend on homeownership.

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