It’s fun to imagine your dream home. It’s even more exciting to visit model homes and open houses. But, it’s also a good idea to be aware of what you can really afford so your visions can be based on your financial realities.

This excellent article from the New York Times can help you get started. As noted in the article, the Federal Housing Administration recommends allocating no more than 31 percent of your monthly income to your housing payment. If you have no other debt, that number may be as high as 40 percent. Know your spending habits and write down exactly how much you pay each month on necessities, credit cards or just plain having fun. It’s also smart to understand mortgage interest, down payments and closing costs. Our best advice? Read the article, sharpen your pencil, talk to your builder or real estate agent – and know before you go on the hunt for a home. To get an idea of what a quality-built new home may cost, visit the Sal Paone Builder website!

Tags: dream home, first time buyers, new home buying, new homes