Step 2: Find Out How Much You Can Afford How do you... - $1.00

The Loan Store Online
The Loan Store Online

How do you...

Step 2: Find Out How Much You Can Afford

Many financial factors apply when you consider owning a home. Here are a few questions to ask yourself and your lender. You can find the answers in several pages on this site.

1. How much can I afford?
How big of a mortgage may I qualify for? See Qualifying for a Mortgage.
What would my monthly payments be? See our calculator.
What do houses cost in the neighborhood where I want to live, and how would the payments compare to renting there? See Owning vs. Renting.
What is my budget? Download a sample budget (MXL) or the same sample budget (PDF).

2. What types of assistance are available for me? Could I qualify for government assistance programs? What is Habitat for Humanity? See Special Programs.

3. What about repossessed homes? Would they be an option? See Step 4: What do you need or want in a home?

4. How is my credit?

What is credit?
How do I check my credit score?
If it isn't so great, how can I improve it?
Can I own a home while improving my credit?
Will my credit affect the loan amount I'm eligible for? The interest rate?
5. What other money topics will lenders want to cover? See Qualifying for a Mortgage.

Income and expenses
Down payment
Borrower history
Closing cost
Employment History