Are you looking for a home in Scottsdale, Arizona? Scottsdale has earned a reputation as an expensive community, one of affluence and sophistication. Unfortunately many people firmly believe that these traits come with a hefty price tag. Although this is often true, you may be surprised by your options.

Maybe you haven't figured out how much your can afford for a home. Some prospective buyers deliberately stay away from Scottsdale because they think prices are out of their reach, while others don't realize when they are in over their heads.

How exactly do you figure out how much you can afford for a mortgage? The formula many mortgage agents formerly suggested was that home owners' plan that their mortgage payment (including taxes and insurance) be about 30% of the total gross monthly earnings.

But times have changed and this formula doesn't always work for all buyers. This old computation method doesn't take into account the debt that most people carry in addition to their mortgage payments. Unlike the "good old days", today, many of us owe on credit cards, as well as car, student, and personal loans.

A far better formula for calculating how much you can afford is to add up all of your monthly bills, and then plan that the total amount of debt with mortgage, insurance and taxes, then keep this total at 45% of your gross monthly income or less.

There are a number of mortgage options that give home buyers more choices. For instance, no interest loans allow buyers to pay against the principle only on the loan for a period of time. This is a great choice for anyone anticipating that their income may increase over the next few years.

Some of these mortgage options are great for buyers in the Scottsdale market. It gives them more opportunities to buy into more expensive home communities. The main caution of course is to not overextend yourself financially so that your home ownership becomes precarious.

Even though Scottsdale is an expensive community, there are still homes available at various price points. There are elegant yet affordable condominium communities, and older single family homes with great potential.

Owning a home in Scottsdale is an important step in planning for your financial future. Scottsdale is certainly a market that will continue to appreciate, and there is no better investment than real estate. Scottsdale also has traditionally been a very "in demand" community, which means this investment offers stability and growth.

With careful planning, you can find your perfect home in Scottsdale and not lose your shirt in the process.