Most people who rent the home in which they live could afford to buy a home with the right planning.

In order to know about your homebuying potential, it will be useful for you to take a look at your income, savings, monthly expenses, and debt. All of these are important factors in how much mortgage you can afford and also in how purchasing a home can affect your monthly budget.

Together the following four categories are a guide that will give you a better understanding of your financial situation. Print this page, and fill in the blanks for each of the categories listed.

4. Review your debt responsibilities

Consider how your debt in relation to your income will influence a lender's decision on your mortgage loan amount. Carefully consider how additional debt from house payments, on top of your existing debt, will restrict your lifestyle. Some questions to ask yourself: