Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.

Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety. (Click Here)

Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.

Get your credit in order. Obtain a copy of your credit report.

Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you. (Click Here)

Organize all the documentation a lender will need to preapprove you for a loan.

Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.

Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

 W-2 forms or business tax return forms if you’re self-employed for the last two or three years for every person signing the loan.

Copies of one or more months of pay stubs from every person signing the loan.

Copies of two to four months of bank or credit union statements for both checking and savings accounts.

Copies of personal tax forms for the last two to three years.

Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account.

Copies of your most recent 401(k) or other retirement account statement.

Documentation to verify additional income, such as child support, pension, etc.

Account numbers of all your credit cards and the amounts of any outstanding balances.

Lender, loan number, and amount owed on other installment loans—student loans, car loans, etc.

Addresses where you lived for the last five to seven years, with names of landlords, if appropriate.

Downpayment

Loan origination fees

Points, or loan discount fees, you pay to receive a lower interest rate

Appraisal fee

Credit report

Private mortgage insurance premium

Insurance escrow for homeowners insurance, if being paid as part of the mortgage

Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.

Deed recording fees

Title insurance policy premiums

Survey (Usually paid by Seller but sometimes cost is shared)

Inspection fees—building inspection, termites, etc.

Notary fees

Prorations for your share of costs, such as utility bills and property taxes

Remember, there’s no "right" time to buy, any more than there’s a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long under any market conditions.

Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision. Realize that the real estate market is always very local.  What is true in Texas is not true in Tennessee.   Hawaii, especially, is a very unique market.

Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go. 

Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price may lose you the home you love. Don't tie your Realtor®'s hands, they know the market and have researched the property; their job is to negotiate for you.

Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.

Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

Factor in maintenance and repair costs in your post-homebuying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.

Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.