Have you ever asked yourself how much home loan can I afford? If you know how much of a payment you qualify for before shopping for a home, your purchase will go much smoother and it can save you a lot of headaches.

How would you like to find the perfect place to live then not know if you can qualify for the loan? Long before you even start looking for your home, you need to know how much home loan you can afford.

Many factors are involved to qualify for a loan. Each lender has different guidelines and there are a multitude of different types of mortgage loans.

Jumbo mortgage loans will be harder to qualify for than a conforming mortgage loan. Other factors like down payment, loan amount and what is considered a good credit score will also make a difference.

There are some general guidelines lenders use that will help answer your question, how much home loan can I afford? These are only rough estimates, but you can get a good idea if you will qualify for a home loan and how much of a monthly payment you can afford.

1. Your mortgage payment, taxes, home owners insurance and any other fixed housing expense should be between 25% and 28% of your total gross (before taxes) monthly household income.

2. Your monthly housing costs (the total figure above) plus any other long term debt (monthly expenses extending longer than 11 months) such as car or boat loans, credit cards or installment loans should not exceed more than 40% of your gross (before taxes) monthly household income.

These figures can get higher if you have a higher credit score because you are a better risk to a lender and are more likely to pass their home loan guidelines.

What is considered a good credit score to a lender usually starts with a score of 680 and above. Lenders vary but a 680 score and above means you will likely get the very best interest rates and terms on your loan.

Lenders use the three major credit bureaus; Experian, Trans Union and Equifax to get an average credit score for you. It's a good idea to check your credit reports from all three major credit bureaus before you qualify for a home loan.

That way if you find any mistakes, you can clear them up before a lender sees your credit report. Once you get your credit report check carefully to see that everything is accurate.

If you find any errors, dispute it immediately with the three major credit bureaus. It takes time to get the errors off of your credit report. If you have a clear credit report before you apply for a loan you are more likely to have a pleasant experience instead of a nightmare.

The best way to know if you will qualify for a home loan is talk with a mortgage professional. This is what they are trained to do and they can give you much more accurate figures so there are no surprises when you go to make an offer.

So now when you are ready to qualify for a loan you'll know exactly how much home loan you can afford.

Copyright 2005 Credit Repair Facts.com All Rights Reserved.

This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html

Home Buying? Check out Your Home Loan Options First!
If you are a first time buyer you may wish to do a bit of checking before you just get a home loan. With a little bit of research, you may find out that you can save several thousands of dollars according to the mortgage loan you choose.There are man...

When to Apply for a UK Home Equity Loan
A UK home equity loan can be useful, especially if you find yourself needing a larger sum of money and not wanting to pay an outrageous interest rate on that money. Because your UK home equity loan will use the value of the equity you've built up in...

No Income Verification Home Equity Loan - Good or Bad?
Are you considering a no income verification home equity loan? There are situations that these types of loans are great for, then there are some where it is just a mortgage broker trying to force you into a bad situation for a commission. You are abo...

Poor Credit Home Equity Loans - Avoiding Home Equity Loan Scams
Obtaining a home equity loan makes it possible to payoff credit cards, finance a home improvement project, etc. In fact, one of the benefits of homeownership is being able to tap into your home's equity for large expenses. Many lenders offer gr...

How Do You Know If A Interest Only Home Loan Is Right For You?
There are many types of mortgage programs available on the market today. But one non-traditional type of home mortgage loan being marketed to consumers is known as an interest only home mortgage loan. It is sometimes called a balloon mortgage, an in...

Free Refinance Mortgage Home Equity Loan Rate Calculator Online
Free Refinance Mortgage Home Equity Loan Rate Calculator OnlineWant to know how you can calculate mortgage loan rates and payments for free?Maybe you're thinking of refinancing, taking out a home equity loan, or applying for a new purchase mortgage. ...

Is A Fixed Rate Home Loan For Me?
With the current mortgage crisis in the United States many people are wondering if the fixed rate loan is the best deal for them.Despite all of the negative press that is out there about sub prime and adjustable rate mortgages these are great choices...

Facts Concerning a Secured Home Loan
When one thinks of a secured home loan, the first thing that comes to mind is the mortgage on your own property. Although this is certainly true, other loans fall into this category as well. It is important to understand the risks involved and how to...

Home Improvement Loan Benefits
Home improvement loan benefits include many things you may not initially consider. In addition to simply being able to do new construction on your house, your home improvement loan might be able to cover some of the costs of remodeling, moving, and ...

North Dakota Home Equity Loans When to Get a Home Equity Loan
With so many different loan products on the market, it can be hard to determine the best way to tap into your equity. Although a North Dakota can be a very sensible loan option for most homeowners, they may not be the best source of financing when yo...