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.

2. Review your savings

A little savings can help a great deal when planning to purchase a home. There are some costs that you cannot finance through your loan; you have to pay those at closing, the day that you buy your home.

Some questions to consider:

Here is an example of some savings categories to help you estimate your monthly savings.