Fueled by FOMO, some buyers skip steps in their eagerness to strike while the iron is hot. Experts caution borrowers to buy a home that’s right in as many ways as possible, including financially. Principal and interest are only a portion of a home’s cost. Standard steps for borrowers would be to target a mortgage payment of less than 25% of take-home pay, save for a 10 – 20% down payment and get pre-approved for a fixed-rate mortgage. Don’t miss estimating maintenance costs on a bigger home or new commute costs for a place farther out.
Source: money.yahoo.com