An important question you need to ask: is this the right time, financially, for you to buy a home? How would you rate your financial picture? Do you think it is healthy? Is your credit good? While you can always find a lender to lend you money, people with poor credit tend to pay far more interest to borrow.  

Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. It is, however, important to stay within your comfort zone.  Purchasing a house involves many up-front and ongoing costs, and the stress of worrying about those costs often outweighs the satisfaction that may come from owning a slightly nicer home.  

To determine how much money you can afford to spend, talk to a respected lender or go online and use a home mortgage calculator. Good calculators will give you a range of what you may qualify for. Then call a lender.