The cornerstone of a successful home purchase is smart budgeting. Here's how to get your finances in shape:

* Create a Realistic Budget: First, track your income and expenses for a few months to understand where exactly your money goes. Use budgeting apps, spreadsheets, or the good old pen-and-paper method.

*Determine Your Affordability: Use online mortgage calculators to see how much you might qualify to borrow, based on your income, debt, and credit score. Factor in property taxes, homeowners insurance, and possible HOA fees.

*Save for a down payment: The bigger your down payment, the less you will need to borrow, and the smaller your monthly payments will be. Look into first-time home buyer programs that offer down payment assistance.

*Improve your credit score: The better your credit score, the better the interest rates for which you may qualify. That could save you thousands over the life of your loan. Check your credit report for errors and take steps to improve your score.