Find Out What You can Afford

Your mortgage lender will look at numbers to determine what you can afford. Your total debt, including car payments and other loans.  Compare your Debt to Income ratio.

Get Pre-Approved for a Loan

Lenders contact your employer and bank to verify your income, check your credit history and determine that you can be approved for a mortgage of a certain amount. While you're not obligated to take this mortgage, it shows the sellers that you are a serious buyer.

Start the Home Search

Most first-time buyers work with a realtor who knows the listings in the neighborhoods where they are interested in living. You may not get everything you want at the price you are comfortable with, so be prepared to compromise. Prioritize what's important to you -- location, school district, numbers of bedrooms or baths, etc.

Look at Your Options

If you can't afford everything you want in a single family home, consider a condo or townhouse. Look at enough properties that you understand what's available in the price range in which you are approved.

Make An Offer

When you've found the right home, make an offer. If it's far below the asking price, be prepared for a counter-offer and some negotiation. Don't be pressured into offering more than you can handle -- if the price of the home is out of your range, you must be willing to walk away.

Settle on a Price

If you can agree with the seller on a price, you will sign a contract and be asked to put down "earnest money" to hold the deal. Make sure your  contract specifies that your money will  be returned if you withdraw the offer.