In general you can afford a home worth about three times your annual household income. If you earn $80,000 per year, you can afford a home priced at $240,000. Monthly mortgage payments are a combination of principal, interest, homeowner′s insurance and property taxes.
Get a copy of your credit report and “clean it up”. Review your report to make sure you have no outstanding debts and to make sure everything on there is of your doing and not a mistake. Contact any businesses on your report that have bad marks against you. Either dispute them or pay them if you know you owe money.
Go to your bank and tell them you want to buy a house. Fill out an application and get what is called a preapproval letter. You may have to pay an application fee.