Summary: Taking out a mortgage is one best way to afford your dream home. However, you should understand how much you can afford to borrow before finalizing. Looking at homes is always the fun part of buying a home. But there are a lot of things you need to do before that. One of the important things to do is to get an idea of how much you can afford to borrow. Not only will it save you time, it will also help you look for houses in the right price range. Many mortgage lenders who come to you through mortgage leads may tell you how much you can borrow. However, doing your own evaluation of the amount you can afford to borrow is always beneficial if you want a clear picture. There are three things you need to focus on while finding out how much you can afford to borrow for a home: Your gross monthly income your long-term debts The amount that you can accumulate to pay up for the down payment and closing costs Monthly Income Ideally your housing expenses should not be more th...