Pre-Qualify Yourself Before you set out to find your new home, you'll want to know your purchase power. Few things are more frustrating in the search for your next home than falling in love with a home that you later discover is more expensive than your budget can afford. You can avoid this disappointment by first getting pre-qualified before you ever begin looking at houses so that you know exactly what your price range is. Then, it’s always smart to apply for a pre-approved loan which will speed the purchase process once you have found the perfect home in your price range. Pre-qualification measures debt and income ratios to predict the loan amount that you may qualify for. We make it easy thanks to Real Living Mortgage, Real Living’s in-house mortgage company. Even though there are many ways to qualify to buy a home, make sure the monthly mortgage payment fits comfortably within your budget. The current rule of thumb is that the monthly mortgage payment should not be more than 25 percent to 33 percent of your gross monthly income.