As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.

Get pre-approved.

Sub-primes may be history, but you’ll probably still be shown homes that aren’t in your price range. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses that are out of your price range. You can also put yourself in a better position to make a serious offer by having your pre-approval letter ready to go when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.

Choose your mortgage carefully.

Previously, the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for a 30-year mortgage instead of a 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when you have the money to do so. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time, taking the points will save you money.

Do your homework before bidding.

Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with sites like Zillow. Its helpful to take note of sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.