Have you taken a long hard look at your finances?

While it’s much more difficult now to buy a house without a sizable down payment—think about 5% to 20% of the purchase price—people can still find themselves “house poor” if they don’t crunch some numbers before meeting with the bank. You may also need a 20% down payment to avoid paying PMI. The larger the down payment, the smaller your monthly payment, and the more equity you start within your house. Though it might be tempting to buy while interest rates are at historic lows and the housing crisis has made it a buyer’s market, it’s only a good idea if you can afford it. So be honest with yourself and your bank balance before you start looking at open houses.

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