DETERMINE YOUR BUDGET

How much money do you have for a down payment?
How much do you want to spend on a monthly basis?

Your debt to income (DTI) ratio plays a large factor in the home price you can afford if financing. To determine your DTI, divide your monthly debt by your monthly salary.

For example, if your debt is $5K per month, and your salary is $20K per month, divide 5K by 20K = 25% DTI. The lower your DTI, the better.

TIP:
Most lenders are looking for a DTI of 40% or less. Most co-ops are looking for 25% or less.