Take a look at your monthly budget and decide how much of a mortgage payment you can afford including your other expenses. A standard rule is to keep your monthly mortgage payment — including taxes and insurance — and other monthly debt below 43% of your monthly income (before taxes).

The benefit to putting down 20% of a home’s purchase price up front is that you won’t have to pay private mortgage insurance (PMI). But, 20% is a lot of money and isn’t realistic for a lot of buyers. You have the option of putting down less, so talk to your mortgage lender about what will work best for you.

Your credit score is one of the first factors lenders review when determining your mortgage eligibility. Most lenders will look for a score of 670 and above. If it's lower than that, your rate will likely be higher, so you may want to talk to your lender about ways that you can help improve it.

A mortgage preapproval is a hard inquiry on your credit report which means this type of inquiry can impact your credit score — and you’ll need to provide documentation to verify your income, assets, and employment before you can get one. Some real estate agents consider a pre-approval letter a must before you can put in an offer.