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 home buying 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.

1. Review your income

Purchasing a home may require that you have a certain amount in savings that can be applied to your down payment and closing costs. If you don't have a lot of cash available, there are loan programs available (especially through FHA and VA mortgage programs) that do not require much cash payment at closing.

Some questions to consider:

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