What is the proper mortgage for my income?
Usually 28% of your gross income is acceptable to conforming mortgage companies. Take your W2 and divide the total by 12 for a monthly income figure. Then multiply that by .28 to get 28%. That 28% of your income should be enough to pay for principle, interest, tax and insurance.
For example if your total income was $24,000 per year, divided by 12 = $2000 per month. 2000 X .28 = $560. Your total payment is not to exceed $560. If the payment seems too high, then ask to be qualified for a lower payment. Just because you can afford a payment on paper, doesn't mean your life style has been factored in!