When buying a home, it is important to balance budget constraints against desired amenities and/or a specific location. Take a close look at your lifestyle, and then make a list of those things you can and cannot live without. Prioritize items on your wish list by order of importance. To keep you and your agent focused during the house hunt, take the list with you.

After you prioritize items on your list, determine how much money you can afford to spend on monthly mortgage payments by creating a budget. When you create your budget, take into account future financial goals as well as immediate expenses, and don't forget a savings plan. Unexpected things happen in life and you don't want your mortgage payments to become a nightmare. Remember, don't stretch your money too thin and once you establish a budget, stick to it!