Borrow within your means.

It’s easy to get caught up in wanting to "keep up with the Joneses". But taking on more than you can handle will only hurt you in the long run.

• Establish a budget.
  Here’s where you determine how much you can actually afford to spend on a monthly payment. Use our worksheet to help you list your current income and expenses.
• Determine monthly payments.
  Now that you know how much you can afford to pay each month, use one of our calculators to determine how much house, car, etc. you can afford to buy.
• Find the right lender.
  Shop around. Compare rates and fees; make sure you choose the lender that gives you the best rate you can qualify for based on your credit score. Not sure what questions to ask? The Federal Trade Commission has a mortgage shopping worksheet available at their website. Shopping for a car? Try this checklist from credit.com.