Working out what you can afford
If experience has taught me anything, the very first step you should take when looking to buy a home is to work out exactly what you can afford. Go to a mortgage broker, bank, or other type of lender and get a pre-approval for a mortgage. This is a commitment from a lender to lend you up to a certain amount of money at an agreed interest rate, subject to certain conditions.
The pre-approval will tell you exactly how much you can borrow and what your monthly payments will be depending on the amortization period of the mortgage. It also has the benefit of locking in an interest rate so spares you from potential increases while you are searching for a home.
Why do this? There are a couple of big reasons. It's a great way to set your expectations for what kind of home you can buy; some online calculators might give you a false impression that you can afford a more expensive property. It also prepares you to move quickly in a competitive market. By getting pre-approved, you can focus your search on appropriate properties and make an offer early when you find the right home for you.