You NEVER want to be house poor. In other words, paying so much for your house that you have no money left for other things. The best way to prevent this is to understand how much house you can buy. Some would say that you never want your monthly payments to be over 40% of your monthly gross income. For example, if you are making $4,000 a month in wages, your home payment should not exceed $1600 a month. Work with your loan officer to see how much house is the best place for you to be. Then when you go in to select your home, you will know your maximum price.