1. Estimate affordability
Use this tool from Redfin to quickly estimate the home value you can afford. Use the advanced options to change the mortgage rate to present value. Note that you can get current the average mortgage rates from nerdwallet. Of course, mortgage rates depends on individual cases, the amount of down payment, your personal credit history and so on, which you will find out in the next step. Plus you need to account for all the hidden costs, which can add up significantly. The goal at this stage is to help you estimate your personal housing affordability.
Since there are additional hidden costs, we recommend keeping debt-to-income ratio below 25% so that you have some wiggle room in the future.