With mortgage rates hovering near historic lows, many real estate specialists worry that homebuyers could be tempted to overspend. They fear their clients could be at risk financially if they overshoot their budget and then face a job change, a marital breakup or another unforeseen event.

"It's always good to be a little on the conservative side when taking out a mortgage," says Joseph Schiro, a real estate broker who has sold property since 1993.

"I always tell clients that before they choose a property they should run the numbers and make sure they stay skinny on their overhead," says Dale Robyn Siegel, a home loan broker and author of "The New Rules for Mortgages."

"Before making any major financial decision, your first task is to ensure you'll have the funds to meet your (core living expenses) every month. Otherwise, your stress level and quality of life could be greatly impaired," Siegel says.

How should you go about determining your core living expenses, known in the industry as your "nut"? Arlen Olberding, a certified financial planner, urges would-be purchasers to take a step-by-step approach. As a first step, he says you should carefully review your checking and credit card statements to see where your money has gone during the past six to 12 months.

Once you've categorized your past spending, it's time to comb through the columns, determining which among your non-mandatory costs you'd be willing to trim to afford the sort of house you wish to purchase.

"In creating a spending plan, you need to think both about your necessary expenses and lifestyle choices, like an urge to travel," says Olberding, who specializes in helping middle-income clients meet their money goals.

Once you've calculated your living costs, along with quality-of-life choices you consider essential, it's time to compare this monthly total to the net income you're bringing in. The difference should be the funds available to cover your mortgage expenses and future home upkeep and utility costs.

Here are a few pointers for homebuyers:

-- Disabuse yourself of the notion that lenders know what you can afford.

After the financial crisis of 2008, mortgage lending standards became very stringent and they remain so, Siegel says. This tightening is making it much harder to gain lender approval -- particularly for people who are self-employed or lack a track record of job stability.

Yet ironically, Siegel says many who can jump over lender approval hurdles are still able to borrow more than they reasonably should. Why? Because the full extent of their living costs isn't apparent to the lender who reviews their file.

For example, in assessing your affordability range, a lender won't take into account private debts. Nor would the lender know you've signed a contract guaranteeing your tuition payments to the private school your child attends.

"If an expense doesn't show up on your credit report, the bank doesn't know about it," Siegel says.

Because a lending institution has limited information on your living costs, she says it's critically important you do your own pre-purchase computation to determine the realistic scope of your monthly nut.

-- Include inflation in your cost-of-living calculations.

Although the government's Consumer Price Index has shown relatively little movement in recent months, inflation is still a major factor for many households. Especially hard-hit are families with young children who face hefty day care costs and those who've opted for private schooling after their kids reach kindergarten.

Then there's the soaring expense of higher education.

Along with education expenses, health care costs have risen dramatically, led by the cost of employee contributions to health plans and the premiums paid for the kind of individual policies used by those who have no access to insurance coverage through work.

Even core energy expenses that are normally immune from big price swings, like utility bills and food costs, can rise unpredictably. In assessing their future living costs, Olberding advises clients to factor in average price increases of as much as 5 percent per year for their core expenses.

"No one is immune from inflationary increases. So it's always better to err on the high side when you're preparing a spending plan," he says.

-- Factor savings into your financial calculations.

If possible, Olberding recommends that adults of all ages strive to contribute to their retirement savings each year a sum equal to 15 percent of their gross income. And he urges that this outlay be classified as a core expense when deciding how much they can afford to cover their housing payments.

"Savings should be one of those core costs you don't forget when figuring out how big a mortgage you can handle safely. Buying your dream house is great, but you want to do so without breaking your budget," Olberding says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Are you a homeowner in your 50s or 60s who hankers to simplify life by selling your high-upkeep house and moving to a condo? If so, it's critical you consider the preferences of an increasingly important segment of the home-buying market: people in their 20s and 30s.

"The younger buyers absolutely know what they want and can be very inflexible about getting it," says Paige Elliott, a real estate agent who's sold homes since 1998.

"They've done a tremendous amount of research prior to stepping inside a single house. They know the exact neighborhoods they like and the price range they can afford," Elliott says.

With so much pre-screening done by purchasers, she says it's important that sellers make sure their property appears online with plenty of professional-quality photos.

Many agents hire highly qualified photographers to take pictures of their listings and cover the cost themselves. But even if you have to reach into your own pocket for this service, Elliott says it's worth it.

Of course, getting young buyers to agree to visit your place is only half the battle. They must also like its interior. Ashley Richardson, a veteran real estate agent, suggests you consider hiring a "stager," an interior design specialist trained to give properties a more polished look.

Stagers first remove excess furnishings and then rearrange the remaining pieces to give rooms a sleeker, more spacious appearance. To complete the look, they may also lend home sellers a few extra designer items -- like area rugs, decorator pillows or pieces of art.

Nowadays, many real estate agents are taking classes on staging to help their clients. But if your listing agent isn't one of them, and can't recommend a stager, you can hunt for one in your local area through such organizations as the Real Estate Staging Association (realestateassociation.com).

Here are a few other pointers for home sellers:

-- Address your windows.

If you're an older homeowner who's lived in your place for a long while, you may still be using window coverings acquired years ago.

But Sid Davis, a real estate broker and author of "A Survival Guide to Selling a Home," recommends you remove any old draperies. (Windows in your bedrooms and bathrooms can be covered with simple white shades purchased from a home center store.)

Another key to bright, sparkling rooms is to thoroughly clean your windows.

Davis contends that many people who are reasonably fit and don't have unusually high windows can do this cleaning project themselves without hiring a contractor.

"The cost of buying window cleaning supplies is minimal, especially if you already have a ladder. In that case, all you'll need is a painting extension pole, a squeegee and a bucket of water mixed with a little dishwashing detergent," Davis says.

-- Hide your family photos.

There's nothing that will date your place faster in the eyes of young homebuyers than personal photos taken decades ago.

Davis says any personal photos can make it psychologically difficult for young buyers to picture themselves living in your property.

"People of all ages want a fresh start when they buy a house. They lose this vision when they see all your memorabilia," Davis says.

-- Update your bathroom lighting.

In their bathrooms, many older homes still feature Hollywood-style lighting with globes set on a chrome bar. But Davis says such fixtures seem dated to many young homebuyers, who typically want something more stylish and less cliched.

"Look for bathroom lighting with a fresher, more current look. It shouldn't cost too much to replace bathroom lights. Likely you can replace any bathroom fixture for around $100 or so," he says.

-- Count on paint to freshen your place.

One sure bet for adding appeal to your interior is to repaint walls and trim throughout, Richardson says. And she says you're much more likely to appeal to young buyers if you avoid repainting your rooms in the sort of bold paint tones that some agents call "commitment colors."

Instead, she urges you to pick paint colors that are muted, near-neutrals.

-- Renovate your front entrance.

Tom Early, who's worked with hundreds of young buyers during his long career as a real estate broker, knows which updates excite a positive response in purchasers. He says sellers who have a limited amount of cash to spend on upgrades should consider using it to beautify their front entrance, which will enhance the home's appeal to buyers of all ages.

"You can get a good feel for how your entrance looks by walking across the street from your property. If the entrance isn't fabulous, make a change," says Early, who was twice president of the National Association of Exclusive Buyer Agents.

As he says, owners who are serious about selling should realize they can better their prospects with a small investment in improvements to their front walkway, to the landscaping around their front door and to the door itself.

"If painting your door doesn't make it look wonderful, spring for a new door. A wonderful door shouldn't cost you more than $1,000, and it's worth every dime," Early says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

In apartments everywhere, young renters are afflicted with a common anxiety: Whether they'll ever get off the rental treadmill to buy a home of their own.

Rising home prices, sizable student loan payments and sluggish improvements in pay combine to make it extremely tough for many young adults to break into ownership. Add to that the reality that rents are high in many communities, making it hard to amass the savings necessary for closing costs and moving expenses.

To make matters worse, the "starter home" segment of the real estate market -- the bottom 25 percent -- now has the fewest available properties, according to Sid Davis, a real estate broker and author of "A Survival Guide For Buying a Home."

Jim Blankenship, a veteran financial planner who's advised numerous young clients on their real estate plans, says, "To afford a home and qualify for a mortgage, sacrifice is often necessary."

Here are a few pointers for first-time buyers:

-- Seek to reduce your debts with extra income.

According to the latest Federal Reserve statistics, overall consumer debt, including car loans, is now relatively stable. But student loan debt continues to soar and now approaches $1 trillion.

For anyone seeking to progress financially, cutting debt -- including credit card balances -- is an absolute must.

"The interest rates charged on most credit cards are ridiculously high. All that interest can eat you alive," Blankenship says.

Unfortunately, many 20-somethings make only enough money to meet necessary living expenses. They're very limited in their capacity to pay off debt or generate savings for a down payment. Given this reality, Blankenship recommends that would-be buyers consider augmenting their income.

"Think about taking a second job. Or try to get overtime at your regular job, assuming overtime is available," he says.

-- Conserve funds by limiting your wedding costs.

Kristin Meador, a real estate broker who often works with young buyers, wrote a book designed to help clients save substantial amounts on their wedding costs, "How to Have a Wedding Without Spending a Dime: Or at Least Very Little."

The book grew out of money-saving strategies Meador developed while helping relatives and friends stage their weddings. It provides pointers on how to cut costs for a range of wedding-related expenses, from invitations to rings to the reception and honeymoon.

"When you're trying to save for a house, it makes no sense to spend $500 or more for a wedding dress," Meador says.

Her book itemizes a number of ways to hold an inexpensive yet tasteful wedding, including having the reception at a lovely local park or community center rather than a swank hotel.

The expense of an average wedding is now hovering around $26,600 -- funds Meador believes would be better spent on a home, assuming the property is carefully selected.

"A lot of parents with money to help their grown kids would rather their funds go toward a home than a fancy wedding," Meador says.

-- Try to slash your discretionary expenses.

Most young adults who live in rental units are very sensitive to their monthly housing costs. But they're typically less aware of how much money they're spending to eat out at restaurants, Blankenship says.

People in their 20s may also spend what he calls "shocking sums" on clothes, as well as entertainment. He recommends that would-be homebuyers comb through a recent month's worth of spending to realize where they could cut back.

-- Consider selling a car to plump up your savings account.

A new or nearly new car is often the first major purchase for many young adults. And usually the car is financed with a hefty loan. But mortgage lenders often frown at the sight of a prospective homebuyer driving up in a late-model vehicle.

"Lenders know that a couple who's financing one or more cars will likely find it tougher to qualify for a home loan," Blankenship says.

Even if you drive an older vehicle and have no car loan, chances are you're paying a substantial amount for car insurance and repairs, not to mention gas.

Blankenship says it's a wise idea for young couples bent on homeownership to ponder the idea of selling one vehicle. Consider public transportation or carpooling as an alternative to commuting alone.

-- Consider the possibility of shared housing on a temporary basis.

Moving in with a family member for a year or so could help you cut rental costs substantially. Perhaps an elderly relative with a large house would let you live there rent free in exchange for help with grocery shopping and trips to the doctor.

Davis says he's worked with a number of young buyers who've obtained substantial savings through a housing-for-services swap.

"You don't have to live with your aunt or another elderly person forever. Just doing so temporarily could help you save sufficiently to pay down enough debt to qualify for a mortgage," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)