Understanding how much house you can afford, or what payment you feel comfortable with, can be a trying process. Calling lenders, evaluating mortgage loan programs, and comparing interest rates can be confusing, to say the least.

But there is an easy way to get started, and give yourself an idea of where you stand.

The first step is to obtain a very clear picture of how much home you can actually qualify for. Ideally, you should contact a reputable lender and let them analyze your entire situation. The lender can calculate your income-to-debt ratio, do a quick credit score, and give you the information you need.

Our recommended agents work with a number of mortgage companies and would be happy to make recommendations.

Information Usually Required During the Loan Process

• Your Social Security number
• Current pay stubs or, if self employed, your tax returns and W-2’s for the past two years
• Bank statements for the past two months
• Investment account statements for the past two months
• Retirement account statements for the past two months
• Make and model of vehicles you own and their resale value
• Credit card account information
• Auto loan account information
• Personal loan account information

If you currently own Real Estate:

• Mortgage account information
• Home insurance policy information
• Home equity account information (if applicable)