Picking sales prices is tricky, but figuring out the answer to how much home can I afford is even more difficult.

Most buyers tend to lean toward elaborate homes while shunning those with less expensive options. Especially first-time home buyers. Everybody wants lots of space, a great view or yard and a fabulous location. The problem is few stop to consider their comfort level, the types of mortgages that are suitable for their needs and whether buying such an expensive home makes financial sense.

Part of an agent's fiduciary responsibility to first-time home buyers is to help them pull on the reins a little and consider all available options. Even the cheaper options.

Apart from figuring front-end ratios, back-end ratios, and examining various loan programs, buyers should consider their first-time home purchase to be a stepping stone and not the be-all-that-ends-all. It's not like buying a new computer and needing the most recent bells and whistles to ensure a useful life . . . read more about How Much Home You Can Afford.

More Articles by Elizabeth Weintraub, click below:

• How to Find a Down Payment
  
• Buying Brand New Construction
  
• What are Real Estate Designations?

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