Have you ever asked yourself how much home loan can I afford? If you know how much of a payment you qualify for before shopping for a home, your purchase will go much smoother and it can save you a lot of headaches.

How would you like to find the perfect place to live then not know if you can qualify for the loan? Long before you even start looking for your home, you need to know how much home loan you can afford.

Many factors are involved to qualify for a loan. Each lender has different guidelines and there are a multitude of different types of mortgage loans.

Jumbo mortgage loans will be harder to qualify for than a conforming mortgage loan. Other factors like down payment, loan amount and what is considered a good credit score will also make a difference.

There are some general guidelines lenders use that will help answer your question, how much home loan can I afford? These are only rough estimates, but you can get a good idea if you will qualify for a home loan and how much of a monthly payment you can afford.

1. Your mortgage payment, taxes, home owners insurance and any other fixed housing expense should be between 25% and 28% of your total gross (before taxes) monthly household income.

2. Your monthly housing costs (the total figure above) plus any other long term debt (monthly expenses extending longer than 11 months) such as car or boat loans, credit cards or installment loans should not exceed more than 40% of your gross (before taxes) monthly household income.

These figures can get higher if you have a higher credit score because you are a better risk to a lender and are more likely to pass their home loan guidelines.

What is considered a good credit score to a lender usually starts with a score of 680 and above. Lenders vary but a 680 score and above means you will likely get the very best interest rates and terms on your loan.

Lenders use the three major credit bureaus Experian, Trans Union and Equifax to get an average credit score for you. It's a good idea to check your credit reports from all three major credit bureaus before you qualify for a home loan.

That way if you find any mistakes, you can clear them up before a lender sees your credit report. Once you get your credit report check carefully to see that everything is accurate.

If you find any errors, dispute it immediately with the three major credit bureaus. It takes time to get the errors off of your credit report. If you have a clear credit report before you apply for a loan you are more likely to have a pleasant experience instead of a nightmare.

The best way to know if you will qualify for a home loan is talk with a mortgage professional. This is what they are trained to do and they can give you much more accurate figures so there are no surprises when you go to make an offer.

So now when you are ready to qualify for a loan you'll know exactly how much home loan you can afford.