To determine how much you can get approved for a mortgage, lenders consider several factors, including your income, expenses, credit score, and other related credentials. Here are some things to keep in mind:

• Income: Most lenders base their home loan qualification on both your total monthly gross income and your monthly expenses. Youll need to provide pay stubs, W-2s, bank statements, and federal tax returns to verify your income. If youre self-employed, lenders will review your tax return transcripts from the IRS to confirm your income.

• Expenses: Lenders will also consider your monthly expenses, including debt payments, when determining how much you can afford to borrow. The 28% rule is a good guideline to follow, which states that mortgage payments shouldn’t be more than 28% of your pre-tax monthly income.

• Credit score: Having a good credit score is important when qualifying for a mortgage. Lenders will perform a hard credit check on your credit report, which can impact your credit score.

• Other credentials: You may also need to provide proof of homeowners insurance, 1099 forms (if you’re self-employed or commissioned), documented dividends, stock earnings, and other sources of income, proof of bonus income, pension statements, and securities documents, such as stocks, bonds, and life insurance policies.

Its important to note that just because you can borrow a certain amount doesnt mean you should. Consider all homeownership expenses, including insurance, taxes, structural upkeep, new furniture, and yard maintenance equipment, before deciding how much you can afford to borrow.