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Before you start shopping for a home, you need to get a realistic sense of what you can afford. There's no point in putting your time, energy, and effort - not to mention your emotions - into looking at houses that would break your budget. Aside from the sizable down payment that you pay up front, owning a home means recurring expenses - principal, interest, taxes, insurance, utilities, maintenance, homeowners' association fees - and occasional emergency expenses. Flip back for an overview of what it costs to own a home.
To get a sense of what you can afford, take the time to get a clear-eyed picture of your current finances: develop a monthly budget and look at the factors that determine how much you can afford in a mortgage. With a monthly budget in hand, you can see how much you can save each month toward a down payment (and look for ways to save even more) and get a sense of how much you'd be comfortable paying in monthly mortgage payments and other recurring costs.
