It’s crucial to set a budget based on what you’re comfortable spending, not just on the amount a mortgage company pre-approves. Before consulting a lender, determine a monthly payment that fits within your financial comfort zone. This involves conducting a comprehensive household budget review and considering changes in expenses that accompany homeownership. If you’re transitioning from an apartment or shared living situation, be mindful of additional costs like garbage, water, or HOA fees, which can significantly impact your budget. Establishing a realistic budget early ensures financial stability and peace of mind in your new home.