It is the perennial question for every first-time homeowner. How much house can I afford? As with so many life-changing decisions, there is no one right answer to this common query, and the size of the home you buy, and the mortgage you take out, will depend on several critical factors.

If you want to know how much home you can afford, you need to ask yourself the right questions. Even more importantly, you need to provide yourself with honest answers to those queries. Here are some things you should be asking as you get ready for the transition from renter to first-time home buyer. 

•What is my current income?

Is that income secure, or is my job in jeopardy? Your ability to pay the mortgage will depend on visibility of income, making the answer to this question extremely critical. 

•How much disposable income do I currently have?

How much of that disposable income can I devote to the costs of home ownership? Owning a home is more than paying the mortgage, and you will...

After sending the offer to purchase to the seller, there's nothing left to do but cross some fingers and hope for the best. Or is there? What happens now and when will the keys finally change hands? The time between the now and the closing date is probably one of the most stressful and critical periods in the buying process. After all, there are a lot of things happening at once. At the end of it all, a seller can accept the offer, reject it, ignore it, or send a counter-offer.

Acceptance of the Offer to Purchase

An offer to purchase will have a clearly stated consideration window. This means the seller has until the deadline to consider the buyer's proposal. Most buyers hope it's accepted right away, but that isn't always a good thing. Either party can make amendments to the document if the seller and buyer both agree to them. However, immediate acceptance can also indicate that the buyer made a mistake. Was the bid too low? Were the offer's conditions too generous? Did the seller price...

Securing pre-qualification, pre-approval, and mortgage commitment letters can simplify the mortgage application process. These steps can also help home buyers avoid disaster. They don't need all three, however.

Mortgage Pre-Qualification and Buying a House

Future home buyers can get pre-qualified for a home mortgage long before they ever start house shopping. Used mostly by buyers to gather information and ask questions, this process is quite informal. Applicants have a consultation with a mortgage lender. He or she will ask a range of questions about debt, finances, the type of home the applicant would like to have, and the requirements for various loans.

Using this information, the mortgage lender will then provide the applicant with a range of information. First, the lender will discuss any details in the applicant's financial profile that may cause issues with the approval process. He'll also discuss mortgage types, their requirements, and what borrowers need to be approved. This gives...