AVOID FINANCIAL STRESS WHEN BUYING YOUR HOME

Financing a home in these uncertain times can be scary. But by asking the right questions, and knowing exactly what your needs are, you can find the right loan for you. There are certain approaches that you can take while mortgage shopping that can cost or save you money.

It is still true that the better qualifications you have, the lower your interest rate will be.

Before speaking with a lender, know what monthly dollar amount you feel comfortable committing to. Then when you discuss mortgage pre-approval with your lender, it is easier for you to determine the monthly amount and what value of home the monthly amount translates into. Do not put yourself in the position where you will be paying more each month than you intended simply because the "dream" house requires it. The "dream" house quickly becomes a "nightmare" if you can't afford to enjoy it.

The advice of some of the best financial advisers is:

- Always use a 15-year mortgage at no more than 80 percent of the value of the house. This would require a 20 percent down-payment or buying a house with a lot of equity up-front, or a combination of both.

-Your monthly payment should be no more than 25 percent of your take home pay.

-And you should have three to six months' expenses in an emergency fund.