Even if you are a year or more away from buying property, it makes sense to set an overall spending budget for yourself that will help you control your spending and maximize your savings. This way, a down payment and a monthly mortgage bill won't be so much of a shock.

You can create a spending budget on your computer, online, or on a sheet of paper, but take some time and do it right. It will help you become more realistic not only about your home ownership dreams, but your overall spending goals. To get an idea of what items you should include, go to Appendix E.

If you're smart, you'll use the home buying process as a trigger to look at how you're doing everything in your life financially. It's a chance to fix problems and start fresh with good financial habits.