Purchasing a home is one of the biggest financial decisions most people will make in their lives. Therefore, it's important to make a good investment up front when you buy your new home in order to insure you make a profit, if or when you sell. This means you must buy the right house, in the right neighborhood, at the right price.

1. Determine if You are Ready to Buy
   
   Have you been employed on a regular basis for the last 2-3 years? Is your current job reliable?
   Is your credit good? Do you pay your bills on time?
   Do you have few outstanding long-terms debts?
   Do you have money saved for a down payment?
   Is your monthly income sufficient to pay a mortgage plus other costs?
   
   If you can answer "yes" to these questions then you are probably ready to buy your own home.
   
   
2. Decide How Much Home You Can Afford
   
   How much home you can afford depends on your monthly income, the amount of your down payment, your credit rating and your ability to pay monthly obligations.
   
   Get pre-approved for a loan before you go house hunting. That way, you'll know exactly the maximum amount you'll be able to spend on a house. Shop around with lenders. Mortgage lenders will usually give you a free quote.
   
   
3. Start Your Home Search
   
   Once you know how much you can spend on buying a home, the next step in the process is to find the properties that best fit your needs.
   
   Decide where to live. Deciding where to live is based on several factors. You'll need to decided how close you want to live to your work place. Location of schools are a major component in the decision process. Check out the quality of schools in different areas. The quality of schools will usually determine the community you move to. The local crime rate and property tax rates are other factors to consider. Search out community amenities. If golfing, tennis and things such as these are important to you then these will help determine where you want to live.
   
   Determine the type of house you like. Create two lists; a wish list and a minimum requirements list. The minimum requirements list is the set of things that your house must have. Things like the size of the family, the growth of the family, how long you will live in the area will help determine this list. The wish list is a set of things that you would really like to have in your home but they aren't essential.
   
   Decide on a new or pre-owned home. You will also need to determine if you want to purchase a new home or a pre-owned home. There are advantages to each. A new home is usually free of hazardous materials like asbestos, lead - based paints etc. They are normally more energy efficient. With a new home comes new carpet, appliances, etc. A pre-owned home is usually situated in a more established neighborhood. The purchase price may be lower and the moving costs will be much less expensive: blinds, window shades are in place, the lanscape and fences are complete. Building errors will mostly likely have been corrected.
   
   Narrow Your Search. On the average, a home buyer will look at 15 properties before deciding on one. Narrow your selection based upon your needs and the criterias you set early on. Asking the home owner questions about potential problems of the home and maintenance issues will help in narrowing the size of your list.
   
   
4. Negotiating
   
   There are a number of negotiating factors involved before signing a contract. These include price, terms, date of possession, inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should have an inspection clause, giving you a way out of the agreement if serious problems are found. A deadline for lending approval for the new buyer should always be included in the agreement.
   
   
5. Tying Up Lose Ends
   
   After you have negotiated an agreement, it's time to work on uncompleted tasks. Schedule all of your inspections immediately. Work with your lender to submit all the remaining information they will need concerning the home you are buying. It is always a good idea to get a preliminary report on the title of the property. Inspect all repairs.
   
   
6. The Closing or Settlement
   
   Depending on what part of the country you live in, the term "closing" or "settlement" is used. This is usually handled by the Title or Escrow Company or an attorney, again, depending upon where you live. If each party has done their homework and were diligent to complete inspections, repairs, etc. then there should be no surprises during this time. This is the time when all the paper work will be signed, home loan funded and the seller has been paid off.
   
   Don't forget to pick up the keys to your new house before you leave closing!