Determine what you can afford
Make this determination based on your own financial situation.

Use this mortgage calculator to see how much can you afford 
Not sure what the interest rate is, check today's mortgage financing rates, courtesy of Bank Rate.
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Be sure to save for a Down Payment and Closing Costs
A Down Payment is a one-time payment toward the purchase of your New Home.
Closing Costs are fees you pay to get the loan. Your lender will provide you a closing disclosure, which lists each of the closing costs you need to cover and how much you'll need to pay at closing.