There is not one single correct answer to this question as it all depends on your other expenses like if you are having a car loan or any leftover education loan and other factors which affects your credit rating but to give you a general idea A traditional starting point is to shop for homes with a purchase price equal to two-and-a-half times your salary so about $250,000 Although $250,000 is a very realistic starting point, it may seem low to some people, especially those living in cities with higher home prices. Some experts suggest that you can afford a mortgage payment as high as 28% of your gross income. According to that estimation , annual salary of $100,000 can afford a monthly payment of about $2,300/month. That could translate to a $450,000 loan, assuming a 4.5% 30-year fixed rate. So check your other expenses and credit rating before deciding what you want and what you need.