Great question. Typically, you don’t want to go more than 30 percent of your gross income on a Home. That being said though what you want to do is write down your take home income(after taxes and deductions) per month. You would take your weekly paycheck/cash coming in times 4. Then write down all expenses you have per month. When writing down expenses think of expenses that may not come up every month but come up from time to time and put them down with your monthly expenses. Compare the income to expenses and that will really help you to determine what you can afford. Remember the lower the house payment though the more flexibility you will have in your budget to cover unexpected expenses when they do come up.