And if the report is accurate but shows past problems, be prepared to explain them to a loan officer. Next you need to see how much house you can afford. The best way to do so is to use one of the Web's many calculators. If you're doing the calculation at home using a spreadsheet or calculator, here's what the results are based on. Use this only as a general guide, though.
Many factors can change that equation.
You must also raise cash for the down payment and closing costs. Most lenders like to see at least 20 percent of the home's price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan. If you have less, you'll need to find loans that can accommodate you. If you qualify, it's possible to pay as little as three percent up front for a loan.