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Borrowing Power
The amount of borrowing power you have with the bank is very important if you plan on buying a home or a second home in the future. Your borrowing power is defined as the amount of money you can borrow from the bank.
You can get this number buy using a mortgage calculator. Get the current interest rates on my site and plug them into the calculator to figure out a monthly mortgage payment you can afford. Once you have done that you will know about how much you can borrow.
Make sure to add in the down payment amount you have before seeing what the monthly payment will be. The down payment makes a very big difference on the mortgage payment. I suggest playing around with the interest calculator to figure out what suits your situation best. There are a lot of options in the mortgage industry so try to explore and make the right decision based on facts.
If you're looking to buy a second home you can still figure out your borrowing power. Just add in the expenses of your current home and weigh them against your monthly income to see how much you can afford.
The bank wont count rent right away but once you own the home and have it rented for about 6 months the bank will include the rent in your income. That way you can use that income to buy another home and keep repeating the process.
I always know my exact borrowing power because I keep my free mortgage calculator handy at all times. I check it again and again to see right away if I can buy another home.
I'll use the calculator to see what my next mortgage payment will cost and then figure out how I will afford it with the bank. Then over the next 10 years you will have 3 homes working for you and 2 of them rented out. So you will be buying 2 homes for free as long as you can keep them rented out. | 
