In order to determine to answer the question of how much mortgage can you afford, there are quite a few aspects you have to look at. You have to look at this even before you begin looking for a house to purchase. The reason for this is because you have to know how much you can afford to pay on your loan each month without putting strain on yourself and your family. Once you have a figure to work with, it will make it a lot easier for you to find a house to buy and you can look at all the options that are within your budget.
The bank will look at your income as well as your spouses. They will also need a list of all your expenses; this way they can see how much money you have left after your expenses, which will help to come up with a figure of how much you can afford to spend on a mortgage. You have to be able to prove your income, so be prepared to collect pay slips or bank statements, or even both. Lying about your expenses also won’t help you because if you get too much of a mortgage, how will you pay it back?
The amount of mortgage you can afford will determine the type of house you will be able to buy. The bank will make sure that your income is secure and you have to be able to make repayments on time every month or face legal action. It can even go to the extent of having your home taken away from you. Visit your bank and let them investigate your matter and let them specifically answer the question of “how much mortgage can you afford” so you know the answer straight away and can begin the search for your dream house.