Get your finances in order

The first thing you should do is make sure you are financially ready to buy a house. In other words, you need to be debt free with a fully funded emergency fund. Be certain you can afford a new home by asking these questions:

• Can I make at least a 10% (preferably 20%) down payment?
• Can I afford a 15-year fixed rate loan?
• Can I keep the house payments at or below 25% of my monthly take-home pay?

If you answered "yes" to all three questions, then you can afford a house. Otherwise, Dave strongly suggests you wait to buy a home.

You want your new home to be a blessing, not a curse, right? Follow these simple guidelines and you'll keep Murphy and his 3 cousins Broke, Desperate and Stupid from moving in.