When selecting a home, you should first determine how much money you can afford to pay per month for a mortgage based on your budget. Which of the following is an appropriate method you should use first to help you determine how much of a monthly mortgage payment you can afford?

Question $12$ options:

Compare your financial situation to that of your friends$/$colleagues$,$ and purchase a house that is similar in value to friends$/$colleagues who have the same income level as you do$.$

Obtain a pre$-$approval certificate from your financial institution.

Look at your cash flow statement and determine what you think you can afford based on the net cash flow you have available.

All of the above.