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 financial aspects of home buying.

Get pre-approved. Sub-primes may be history, but you’ll probably still be shown homes you can’t afford. By getting pre-approved as a buyer, you can save yourself the grief of falling in love with a house that is out of your price range. You can also put yourself in a better position to make a serious offer 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 spending power, you’ll be less likely to get in over your head.

Choose your mortgage terms carefully. You may be focused on paying your mortgage off as soon as possible, but if you are among the majority of home buyers who have debts other than what they allocate for shelter (student loans, credit cards, etc.), it is prudent to opt for a for a 30-year mortgage instead of a 15-year mortgage. You will have a lower monthly payment, and you still have the option of making an additional principal payment when money is good. When choosing 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—and given the current real estate market—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. Consider sales of similar homes in the last three months, in particular. 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.