Do this before doing anything else.Head over to your bank and speak with a loan officer.
While most people opt for conventional loans, there are also FHA, VA, and 5/5 ARM (adjustable-rate mortgage) loans. Conventional loans require 20% of the cost of the home, but other loans may need less.
The affordability of your monthly payments is not determined just by the cost of the home itself. It is also affected by mortgage interest rates, closing costs, and various fees associated with the home-buying process.
When determining your budget for a new home, be sure to calculate your new home expenses after the fact as well.