When looking to buy a new home, one of the first questions people often ask themselves is "how large of a mortgage can I qualify for?" 

Generally speaking, you can usually qualify for a loan of two to two-and-a-half times your household's annual income.  For example, if you make $40,000 a year, you can usually qualify for a loan of $80,000 to $100,000.

Of course lenders use other factors to determine how large of a loan you are eligible for.  Lenders generally prefer that your housing expenses (mortgage, taxes, insurance and special assessments) do not exceed 25% of your gross monthly income.  Your other financial obligations should not exceed more than 36% of your gross monthly income.

Naturally, lenders will also need to research your credit and employment history. 

There are several different types of loans available.  Which one you select can also effect how much you qualify for.