It is wise to speak to a mortgage broker or lender before looking for a home. A mortgage pre-approval gives you an idea of how much you can afford. Although, you will still need to do some number crunching of your own. If a mortgage broker or lender says that you can afford a maximum purchase price for a home, you should consider if that amount makes financial sense for your lifestyle. Focus on the estimated monthly or biweekly mortgage payment and work back from there. Putting in an offer at your maximum purchase price may leave you stretching your funds every month. Keep in mind that a mortgage pre-approval doesn’t guarantee mortgage financing. Adding a financing contingency to your home purchase offer can protect you if your mortgage application is denied for whatever reason. Suppose you waive the condition of financing. In that case, you would be on the hook for the home deposit regardless of your mortgage application status and risk being sued by the seller if financing falls through.