Your credit score is one of the primary criteria used to determine if you qualify for a mortgage. It also plays a crucial role in determining the terms of your loan. Don't be surprised by your credit report after submitting your loan application; research in advance.

Having a steady income is a great start, but it's not everything when it comes to getting a mortgage. Lenders want the assurance that you'll be able to afford your mortgage in addition to any other debt you may have. To assess your ability to make payments, lenders will review your debt-to-income ratio: all your monthly debt payments divided by your gross monthly income.

Perhaps the most important factor in determining your purchasing power is how much cash you're bringing to the table. Your down payment, the initial payment you make toward the purchase price, can influence the loan products you qualify for and how much house you can afford. Putting down at least 20% of the home's price eliminates the need for Private Mortgage Insurance (PMI). This benefit is appealing to sellers, which can put you ahead of other buyers and save you monthly PMI payments. However, there are many loan programs that do not require a 20% down payment. Speak with your Loan Officer to determine which type of loan makes the most sense for you. A large down payment demonstrates that you're committed and financially ready to take the next step toward homeownership.

In addition to your down payment, you'll need to budget for closing costs, the expenses associated with processing the purchase of your home. Closing costs can include registration fees, loan origination fees, appraisal fees, title insurance, and more. Typically, these costs will range between 2% and 5% of the purchase price of your home.