Buy Less House Than You Can Afford

Years ago, I worked as a real estate agent, and many people were tempted to start shopping for homes at the top of their price range.  Just because the mortgage lender preapproves you for a certain amount does not mean it's a good idea for you to spend that amount.  Take a good look at how the monthly payment will impact your overall budget, and if you're realistic, you'll probably realize that's more money than you want to spend every month.

That's something I've always debated..  It good not to be stretched too tight on your budget, but real estate is generally a good investment too, so I'm not so sure it's a bad idea to buy at the top of your price range.

I'd say it's not always a good idea to buy at the top of your price range. The bank I work for gives people their outside borrowing capacity (highest borrowing limit) on purpose, knowing people will get all snotty and try to buy the biggest, best and brightest they can find.

It's called "Profit Making" for a bank.

I personally try to talk to my customers about seeing what they can logically afford on just ONE income - so the other income can be used for savings or raising kids or paying off debt quicker...