Getting the right kind of mortgage for your home purchase is equally if not more important than finding the right house in the right area. History shows that overextending oneself to buy a house can have serious financial consequences that can lead to financial disasters. What you can qualify for and what you can afford are two different things. Lenders generally look at your gross income and your liabilities i.e proposed mortgage payment, credit card payments, car or other installment loans and allow up to a certain percent of your monthly income to be assigned towards these obligations. Lenders do not take in to account, how much your grocery, utility bills, car insurance payments, child care expenses or other similar monthly expenses are. Therefore, before making a significant financial commitment it is vital that the buyer look at his/her financial situation. Before starting to look for a house, sit down with a mortgage consultant and evaluate different programs and select the one that best suits your needs. Get pre-qualified and pre-approved before making an offer on a house. This will empower you to negotiate with the seller with confidence and force the seller to look at you as a serious and able buyer.