You can usually qualify for a mortgage loan of two to two and one-half times your household's income. For example, if your family has an income of $40,000 per year, you can usually qualify for a mortgage of $80,000 to $100,000.

Some lenders use other factors to determine the size of a mortgage you are eligible for. In general, lenders prefer that your housing expenses (mortgage, tax payments, insurance and special assessments) do not exceed 25% of your gross monthly income. Other financial obligations (monthly payments extending more than 10 months) should not exceed more than 36% of your gross monthly income.

Lenders need to research your credit history to see how well you have repaid loans in the past. Also, the lender will inquire about your employment history.