Two years ago, a young couple made the impulsive decision to buy a two-bedroom house in a brand-new subdivision. They were spurred by the price tag: $12,000 less than three-bedroom properties in the same development.

But soon after moving in, the couple realized their huge error. With a second baby on the way and dreams for a still larger family, they needed a place with at least three or four bedrooms. That's why right after moving in, they changed course and put their two-bedroom place up for sale.

"They allowed themselves to be dazzled by a bargain that wasn't really a bargain. What's more, they failed to ponder the many lifestyle implications of purchasing too small a house," says Sid Davis, the veteran real estate broker who listed the couple's property.

Davis, author of "A Survival Guide for Buying a Home," says most homebuyers are more thoughtful when planning a home purchase. But like the couple in this true story, a few experience buyer's remorse after choosing an ill-fitting floor plan or an uncomfortable neighborhood.

"You can't let emotions blind you to the consequences of buying wrong," he says.

Where you choose to live has countless implications, says Doro Kiley, a certified life coach who's helped a number of clients navigate real estate transitions. She urges clients to make a home choice within the context of their overall life plans.

Once you have a clear vision of your ideal home and location, you can begin taking into account such practical realities as financial limits and commuting distances. Here are a few pointers:

-- Find words to describe your ideal lifestyle.

Kiley recommends that couples planning a home purchase first write down their respective visions of a dream house. They should then share their visions, combining the key elements of both into a single statement.

Written statements help people clarify their thinking and refine the details of their plans as they move through successive drafts. They're also a way to help reconcile differing views, she says.

Merrill Ottwein, a real estate broker and former president of the National Association of Exclusive Buyer Agents (www.naeba.org), suggests that home-buying couples try to resolve their differences by distinguishing between "wants" and "needs."

For instance, a couple with four young children might decide that acquiring a place with five bedrooms is a genuine "need." But a formal dining room could easily slip into their "want" category.

-- Consider the implications of a lengthy commute.

According to Ottwein, one of the most wrenching trade-offs many families face is between a larger, newer house with a longer commute and a smaller, older place that's closer to a city center.

Homebuyers who consider an outer-tier suburb are often driven by the desire for a larger property or what they perceive to be better schools.

"Unfortunately, good schools often correlate with newer suburbs rather than older areas that are close in," Ottwein says.

But before you opt for a distant suburb, he strongly recommends you do morning and afternoon rush-hour test drives. This way, you'll know more precisely what sort of traffic to expect if you buy there, he says.

Ottwein adds that homebuyers should disabuse themselves of the notion that the current level of traffic congestion on their path will remain static. The odds are that the traffic will worsen as the years go on.

-- Take into account the demands of a large yard.

Many people with young children hang on tightly to the hope that their kids will have a large backyard where they can frolic. This aspiration can influence them to pick an outlying suburb at the expense of their convenience and commuting time.

But are the trade-offs necessary to acquire a large piece of land always worth it? Not necessarily, says Ottwein, noting that today's children often spend much more time in organized athletic and recreational activities than their parents did.

"They have little time for the sort of free backyard play their folks remember so nostalgically from childhood," he says of modern children.

-- Don't rush into the selection of a property.

Nowadays, those seeking a home in popular neighborhoods often face fierce competition from other bidders. They feel pressured to act quickly, lest they lose out to a rival. In the process, Ottwein says some buyers are now taking regrettable shortcuts -- rushing into a purchase without analyzing whether the property they buy truly matches both their primary wants and needs.

"With so much at stake, it's a horrible idea to buy any house before you're really ready. Don't let your competitive instincts trick you into the wrong choice," he says.

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

Two years ago, a young couple made the impulsive decision to buy a two-bedroom house in a brand-new subdivision. They were spurred by the price tag: $12,000 less than three-bedroom properties in the same development.

But soon after moving in, the couple realized their huge error. With a second baby on the way and dreams for a still larger family, they needed a place with at least three or four bedrooms. That's why right after moving in, they changed course and put their two-bedroom place up for sale.

"They allowed themselves to be dazzled by a bargain that wasn't really a bargain. What's more, they failed to ponder the many lifestyle implications of purchasing too small a house," says Sid Davis, the veteran real estate broker who listed the couple's property.

Davis, author of "A Survival Guide for Buying a Home," says most homebuyers are more thoughtful when planning a home purchase. But like the couple in this true story, a few experience buyer's remorse after choosing an ill-fitting floor plan or an uncomfortable neighborhood.

"You can't let emotions blind you to the consequences of buying wrong," he says.

Where you choose to live has countless implications, says Doro Kiley, a certified life coach who's helped a number of clients navigate real estate transitions. She urges clients to make a home choice within the context of their overall life plans.

Once you have a clear vision of your ideal home and location, you can begin taking into account such practical realities as financial limits and commuting distances. Here are a few pointers:

-- Find words to describe your ideal lifestyle.

Kiley recommends that couples planning a home purchase first write down their respective visions of a dream house. They should then share their visions, combining the key elements of both into a single statement.

Written statements help people clarify their thinking and refine the details of their plans as they move through successive drafts. They're also a way to help reconcile differing views, she says.

Merrill Ottwein, a real estate broker and former president of the National Association of Exclusive Buyer Agents (www.naeba.org), suggests that home-buying couples try to resolve their differences by distinguishing between "wants" and "needs."

For instance, a couple with four young children might decide that acquiring a place with five bedrooms is a genuine "need." But a formal dining room could easily slip into their "want" category.

-- Consider the implications of a lengthy commute.

According to Ottwein, one of the most wrenching trade-offs many families face is between a larger, newer house with a longer commute and a smaller, older place that's closer to a city center.

Homebuyers who consider an outer-tier suburb are often driven by the desire for a larger property or what they perceive to be better schools.

"Unfortunately, good schools often correlate with newer suburbs rather than older areas that are close in," Ottwein says.

But before you opt for a distant suburb, he strongly recommends you do morning and afternoon rush-hour test drives. This way, you'll know more precisely what sort of traffic to expect if you buy there, he says.

Ottwein adds that homebuyers should disabuse themselves of the notion that the current level of traffic congestion on their path will remain static. The odds are that the traffic will worsen as the years go on.

-- Take into account the demands of a large yard.

Many people with young children hang on tightly to the hope that their kids will have a large backyard where they can frolic. This aspiration can influence them to pick an outlying suburb at the expense of their convenience and commuting time.

But are the trade-offs necessary to acquire a large piece of land always worth it? Not necessarily, says Ottwein, noting that today's children often spend much more time in organized athletic and recreational activities than their parents did.

"They have little time for the sort of free backyard play their folks remember so nostalgically from childhood," he says of modern children.

-- Don't rush into the selection of a property.

Nowadays, those seeking a home in popular neighborhoods often face fierce competition from other bidders. They feel pressured to act quickly, lest they lose out to a rival. In the process, Ottwein says some buyers are now taking regrettable shortcuts -- rushing into a purchase without analyzing whether the property they buy truly matches both their primary wants and needs.

"With so much at stake, it's a horrible idea to buy any house before you're really ready. Don't let your competitive instincts trick you into the wrong choice," he says.

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

She's a 21-year-old college senior who's been a resolute saver since childhood, when she collected coins her older brothers carelessly let drop behind the sofa cushions in their family home. Through college, she's saved by money living with her parents and working part-time jobs.

Now with a war chest of $10,000, the young woman has a firm plan. After graduating next spring, she'll buy a modest house in a middle-income suburb near her new full-time job as a health care manager. Her savings will help fund her down payment and closing costs.

"I want to build ownership. It's ridiculous to throw money away on rent," she says.

In the years after the housing bubble burst, a number of real estate analysts asserted that many in the millennial generation -- now age 18 to 34 -- were indifferent to homeownership. But housing economists say that's no longer true, if it ever was.

"We're seeing an influx of millennials driving the market now. Almost half the buyers within the last year were in this age band," says Aaron Terrazas, a senior economist for Zillow, the real estate data firm.

Terrazas says many millennials have done the math and realize that, given high rental costs, ownership is often the cheaper option. But even though low down payment mortgages are available to qualified buyers, he says most first-time purchasers seek to amass as big a down payment as possible.

"With a larger down payment, they can decrease their monthly mortgage costs," he says. "Yet with rising rents and student loans, it's incredibly difficult for millennials to save."

Raising funds for a home purchase isn't the only challenge confronting first-time buyers. In popular areas, many also face rival purchasers competing for available homes due to a shortage of entry-level inventory.

Are you a cost-conscious homebuyer who hankers to get beyond the rental stage? If so, these few pointers could prove useful:

-- Look for a mortgage lender to help you set a spending ceiling.

Real estate specialists always advise first-time buyers to determine their mortgage borrowing capability before heading out to look at property. That way they won't get their hearts set on a property that's unreachable for them.

"Getting a mortgage is very tough for first-time buyers," says Tom Early, a veteran real estate broker. He says purchasers should make sure a lender takes them through a serious pre-approval process.

He encourages first-timers to meet face-to-face with a lender and spend up to an hour in that meeting -- or enough time to ensure all their questions are answered. Soon after this meeting, the lender should issue a "pre-approval letter" that spells out their full borrowing capacity.

-- Prepare a household budget before touring property.

Prior to granting you a pre-approval letter, your lender will likely ask about your major obligations, like payments on your credit cards and car loans. But chances are the lender won't ask about your other obligations, such as a commitment you've made to a religious or charitable institution.

"When your lender sets your borrowing limits, he doesn't see the full picture. That's why I suggest you do a personal budget before deciding how much to spend on housing," Early says.

First-time buyers should also take into account the money they'll need to spend to put their property into move-in condition.

"It doesn't matter how wonderful a house you buy, the odds are you'll want to make it more to your tastes. At the minimum, you'll probably want to paint, replace worn carpeting and improve your yard," Early says.

Also, make sure you factor in your carrying costs for homeownership -- such as your energy bills.

"Pre-approval helps you define your top limit on financing. But that's just the beginning. You have to decide for yourself how much you're comfortable spending. These days, almost all buyers stay under their borrowing ceiling," Early says.

-- Consider only a "plain vanilla" fixed-rate mortgage.

John Rygiol, a long-time real estate broker who heads his own firm, says there are few instances that justify first-time buyers taking an adjustable rate mortgage, especially with fixed-rate mortgages currently hovering near historic lows.

A traditional fixed-rate mortgage is especially helpful at a time when rates are projected to rise, Rygiol says.

"Low and stable mortgage interest rates are one of the few benefits left in this economy," he says.

-- Make sure you think about resale before choosing a home.

No matter how long you intend to live in your first home, Early says it's smart to pick out a property that should be easy to sell when it's your turn to do so.

"Think about the back end of your transition. Remember that someday that house will be on the market again," Early says.

Keeping in mind your budget constraints, what features are ideal when choosing a house that's very marketable?

"If you can afford it, always try to buy a place with plenty of bedrooms," Early says.

What other features should you look for?

"Ideally, you'll want a place with at least two bathrooms, or a minimum of a bath and a half. Also, remember that many buyers are strongly attracted to a family room with a fireplace that's big enough for a very large TV," Early says.

Even more important is finding a prized neighborhood location. Well-rated schools, prime shopping and good roadway access are all features that help define a popular neighborhood, Early says.

"Never compromise on location," he says. "You'll be vastly happier owning an asset in a strong neighborhood. Even in economic downturns, property in strong neighborhoods holds its value better."

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