Let's say for example that you want to buy Leland real estate. You apply for a mortgage from a lender and got preapproved for $300,000. The first thing you'll think of is whether you should look for Leland homes for sale that are closer to $300,000. Whether you should borrow the total amount or settle for a lower figure really depends on several things. As you get acquainted with these factors, you'll see how borrowing within your means would positively affect not just your home buying experience but whether you'll be able to keep the house afterwards or not.

1. Current debts - How much money do you need every month in order for you to pay off your debts? Some people technically can buy an expensive house with the kind of income that they earn, but the fact of the matter is that their debts leave them with little breathing room at the end of the month. List down the bills with a fixed amount and those that change amounts every month. List down all financial obligations that you need to prepare for. Now add to that the cost of the possible monthly mortgage, insurance fees, and tax that you need to pay. How much breathing room can you still have? Unless you can pay down your debts in order to make room for bigger mortgage payments, maybe you should consider buying a cheaper house.

2. Emergencies - Nobody knows when emergencies can happen, but you can always do what you can to prepare for them. Let's say that you bought Leland real estate at the maximum price of the loan that was preapproved for you. If anything happens that would warrant you to adjust your financial priorities, you may end up losing the house that you bought. Getting hospitalized, for example, or having to buy expensive medication every month, would take up a lot of money. If you don't have much financial breathing room, it would endanger your home ownership significantly.

3. Downpayments - Have you saved up enough to pay off a bigger downpayment? It's really important for potential home owners to only put down a downpayment that they are comfortable to put down rather than stretch yourself too much for it.

4. Closing costs - If you want to estimate how much the closing costs would be, it's around 2% to 3% of the sales price of the house. This means that if you buy a $300,000 house, the potential closing cost would be $6,000 to $9,000. This can always change, and some of it can even be shouldered by the seller. However, being prepared for having to pay for this amount would be important in terms of being able to go through closing without hitches.

When figuring out how much you can truly afford for a house, regardless of how much you got prequalified for, it would help if you did a 6-month dry run. On top of your usual bills and financial obligation, set aside how much you are expecting to pay for a house. Let's say you are thinking of buying Leland real estate property worth $1,200 per month, plus $400 tax. Set aside this $1,600 and see if there's breathing room and whether this is within your comfort level.