"We found a home we totally LOVE. But can we afford it?"
"Can we afford it?" is actually TWO questions:
The costs of purchasing a residence fall into three categories:
(It's also smart to factor in moving costs, so that you can get a more complete picture of your expenses.)
As rule of thumb, closing costs can total between 3% and 5% of your total mortgage. To help you firm up your budget, your home mortgage specialist will give you a good faith estimate of your closing costs shortly after you apply formally.
NEXT: Prequalification vs. Pre-approval