It's easy to fall in love with a house that's out of your price range and talk yourself into stretching your budget too thin. Set a price ceiling BEFORE you start looking at homes to avoid the temptation to buy something you can't afford, and make sure your realtor is aware of your budget and only shows you homes you can afford.
Your dream home is within reach. Now it's just a matter of finding and buying it. Here's a handy list of home-buying tips at HowStuffWorks.