It happens: you fall in love with a home that seems perfect, but it is way outside your possible price range. Before you go looking at homes, and long before you consider putting an offer on one, you need to run the numbers. Get some professional guidance – there’s more to home ownership than a mortgage payment – and determine exactly what you can comfortably afford.

Just because the bank says you can afford it, doesn’t mean you can do that an feel comfortable with the payments while keeping up with the rest of your lifestyle.

There are a number of great tools for household budgeting out there and they are free. Take the time to know what mortgage payment amount fits you.  It’s not unlike dieting – writing down what you spend your money on each month is really the best way to ensure you haven’t forgotten anything and you’re not fooling yourself!

I personally like the Money Mentors site and have recommended their free “Stretch Your Dollars” workbook to many people. Check out their site for of other great resources as well.