First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment?

Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow.

The financial rule of thumb is: your total monthly debt service, which will include your monthly mortgage, shouldn't be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.

Naturally, every situation is different, and each lender has different rules about working with buyers. A number of choices within your control can affect your monthly payment as well. For example, you might choose an adjustable rate loan, which has a lower initial payment than a fixed rate program. Similarly, a larger down payment may lower your monthly payment.

If you'd like more information about how much home you can afford, please call or email. I can help you get the mortgage information you need.

• First Time Home Buyer Tax Credit
• Why Buy a home instead of renting
• Where to search and how to find current listings
• Considering a move? Steps to take
• How to Look for Foreclosures?
• The home search. Choosing your home
• Homebuyer tips
• The home search. Finding out how much you can afford
• The pre-qualification process
• The difference between getting pre-qualified and pre-approved
• Local South Bay Mortgage Lenders and Loan Brokers
• Down payments
• What does your mortgage pay for: PITI
• The loan process
• Understanding Closing Costs
• Homeowners Insurance
• CAR Mortgage Protection Program