Purchasing a home is quite possibly the largest investment you will ever make, it takes careful planning and consideration. When figuring out which houses you may be interested in you must first consider what you can afford, and what the lender will approve you for. Lender considers debt-to-income ratio when decided if a person is eligible. If they have too much debt compared to what they make, they will not get approved for a loan. Depending on the type of loan you choose, the debt ratio can vary. You must also consider the loan to value ratio, meaning how much money you are borrowing compared to what the house is worth. This all depends on the appraised value of the house. Loans with an LTV of 80% or more require mortgage insurance. Mortgage approvals also consider your credit score, which can be improved in many ways. The lower a credit score, the less money you will be approved to borrow. Monthly mortgage payments vary depending on the rate your loan was locked at, the down payment that was paid on the home, the size of the loan, and the length or term of the mortgage. But these payments include the principal and interest on the loan, and usually taxes and homeowners insurance are also included.