How will I know the price of the home I can afford?

Our agent will advise you to meet with a mortgage banker to determine mortgage amount they would be willing to advance you, depending on the cash you have for down payment, this would enable you to decide on house price, there are also many no money down loans although usually the interest rate is a little higher. Being approved by a mortgage banker is also an excellent way to show the seller you will be able to afford to purchase.