Everyone wants to s-t-r-e-t-c-h their dollars. It is always wise to investigate how much home you can reasonably afford before you begin the search for your home. My Mortgage Calculator can give you a general idea.

It also helps to know your credit status and how credit agencies rate your credit. The three main credit-reporting agencies will, for a small fee, send you your most current credit report on file. They are:

Experian
1-888-3973742

Equifax
1-800-997-2493

Trans Union
1-216-779-2378

Or, you can get a Free Credit Report.

Mortgage lenders will take into consideration all of the following:

The size of your down payment
Your job stability
Existing debts
Credit references
Payment history

They usually use the following two qualifying guidelines to decide how much of a loan you can manage:

Your monthly housing expenses (mortgage payment, property taxes, insurance, etc.) should total no more than 28 percent of your monthly gross income.

Your monthly living expenses and any long-term debts (utilities, car and school loan, child support, health and car insurance, etc.) should total no more than 36 percent of your monthly gross income.

Prior to looking for a home I suggest talking with a Trusted Mortgage Expert and get a pre-approval letter. My Trusted Mortgage Experts (click here) have proven themselves many times over with past clients.

If you mention my name to any my Trusted Mortgage Experts they have agreed to counsel with you and provide a Free Pre-approval Letter based on your qualifications. Of course, if you decide to use them for your financing, their normal fees will apply.