If you're a first time homebuyer, one of the most important questions to answer is: how much house can I afford? To answer that question, you need to know how much mortgage you can afford. This article will help you understand the mortgage process, and our list of calculators can give you even more insight into the possibilities. 

The availability of mortgage financing is obviously important to your purchase plans and each mortgage lender has their own lending guidelines, or Rule Book that you'll need to consider.  Different scenarios require different rules. For instance, whenever you have less than 20% down payment, your lender will need Mortgage Default Insurance .  So when figuring out how much home you can afford, your mortgage professional must refer to the Rule Books that apply to your specific situation.

So you are paying the rent and living with a roommate.  You and your partner have almost saved up enough money for a 5% down payment on a house.  Your mortgage broker / bank says you need to prove you have a further “1.0%-1.5% for closing costs" – what the heck???  On a $300K purchase, that could be a further $4500!  Where does that money go?