HOW MUCH HOME CAN YOU AFFORD? (AS REPORTED BY KATHRYN VASEL ON MONEY.CNN.COM)

This is a seller’s market when it comes to real estate. Lower inventory across the country is driving home costs higher. And so if you’re one of millions of Americans planning to buy a home this year, CNN Money wants you to keep a few things in mind.

First, and most importantly, be honest with yourself about how much home you can afford. A general rule of thumb is that housing costs should not make up more than 30% of your pretax income. You don’t want to blow through your entire savings just to make the down payment, because there are more costs that you need to worry about.

Read this article for more advice on the home buying process.

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