Foreclosures are at their highest level and home prices keep going up. People are saving less money and continue to get deeper in debt. Before starting your hunt for a new home sit down and think about how much home you really can afford so that you don't find yourself being evicted from your foreclosed home.

Today there are hundreds of banks and mortgage companies that will finance almost anyone. If you want a home you can find someone who will lend you the money. Of course the higher your credit rating the lower the interest rate you will have to pay. So lesson number one is save thousand by raising your credit score. If you can save one percent on your home interest rate you will save tens of thousands of dollars in interest over the life of the loan. Raising your credit score is the best way to save money when buying a home.

Don't buy more home than you can afford. Calculate your gross monthly pay and divide it by four. This is the monthly amount you should allocate for your home purchase. So if your monthly gross income is $4000 dollars you can safely afford a home mortgage payment of $1,000 dollars. This formula can vary based on your other debt obligations. The more debt you have the less home you should buy.

One vital point, don't pay too much for the home. Typically buyers fall in love with a home and forget to get a home appraisal before making an offer. There are several free home appraisal services on the Internet so take advantage of them when you find a home you like. Don't just trust your real estate agent to advise you on the offer price. Do your homework and save money on the front end of your purchase.

Make sure you follow these three suggestions so that you can enjoy your home and not feel that it is a burden. Don't get into a situation where you are one missed paycheck away from foreclosure. Get your credit score up, don't buy too much home, and don't over pay for your next home.