How do I know if I can buy a house and get a mortgage loan?

Try to find a home loan that you can afford given your other priorities and not one that is the amount you qualify for. Lenders will often tell you how much you are qualified to borrow, that is, how much money they are willing to lend you. Various calculators available online will compare your income to your debts and give you similar results, based on average values. But the amount you can borrow is very different from the amount you can pay, without depressing your budget, preventing you from covering other important expenses. Lenders don't take into account all of your family and financial circumstances. To find out how much you can afford, you'll need to take a closer look at your family's income, expenses, and savings priorities to find out what works best for your budget. You should also remember that your monthly payment could change in the future, depending on the type of home loan you have. Consider how to budget for future larger mortgage payments. Don't forget about other costs related to your mortgage and home when you are defining your ideal payment. It's normal for costs like homeowners insurance, property taxes, and possibly private or homeowners association mortgage insurance to add to your monthly mortgage payment, so be sure to include these costs when figuring how much you can afford. There may also be expenses for repairs and maintenance of your home. You can do calculations with your insurance agent, local tax assessor, homeowners association, and lender. Knowing how much you can comfortably afford each month will also help you figure out a reasonable price range for your new home. Tip: Don't sacrifice savings to buy a bigger home. When reviewing your budget to determine a mortgage payment you can afford, don't forget about your savings. You may still need to save for emergencies, retirement, your children's college, and other priorities, even after you become a homeowner. Consider allocating more money for your emergency fund or home fund to avoid falling into debt for sudden repairs, expensive replacements, or other necessities.