What should someone be prepared with if they want to buy a home?

First of all, go talk to a mortgage broker to get pre-qualified for a loan. (I suggest mortgage company over a bank. Mortgage companies have access to several different lenders and can compare rates. If you go straight to a bank, they will only have their programs and their rates. The closing costs are all the same). Ask them if they know of any good realtors they recommend you use for a first time homebuyer. Your realtor will find homes for you based on your criteria of what you are looking for. When you find it, you will make an offer via your realtor (a lot of the time, sellers will pay for closing costs and the realtor commisions will be added onto the purchase price of the home).

Next, it's back to the mortgage company. You will need to have a copy of your photo ID, your most recent bank statement, 1 months worth of paystubs, 2 previous years W-2s, and any documentation on assets you may have (401K, other retirement, savings accounts, etc.). These will be used to determine your income. The mortgage company may or may not have already pulled a credit report for you, but they will need that (and will get that with your permission). You will need to sign all the disclosures and paper work required to submit your file to the lender. An appraisal will be ordered for the home. If you are doing a conventional loan, your appraisal will need to be paid up front. New HVCC laws require borrowers to pay before they appraisal is ordered. These are usually $400, but could be more depending on the price of the home and your location. If you are doing a government loan, this will be paid for at closing.

The lender will then (hopefully) approve your file and a few steps later (probably nothing that you need to do) your closing will be scheduled.

Start doing things on your own before you sign a contract with a realtor. Use an online site like realtor.com to check out houses in areas your considering. It'll give you an idea of what asking prices are for what you'd like. Sites like that have tools to calculate monthly payments. There is a site called city data that is rich with statistics in any city you can think of. When you see a property you might be interested in that has a sign out front, they usually also have flyers attached the for sale sign that gives the run down on the property and asking price. You want to drive by some properties you've found on line and check out the surrounding area, see what the properties look like in real life. Go to some open houses with the intent to learn the process.

You do not have to sign with a realtor office or agent just because they show you a house or answer some questions. You want to shop for a realtor before you sign with one. The way to that is to collect agent cards from a few open houses. If there is a house you'd like to be shown, arrange with an agent to show you the house. Call a different office and have a different agent show you another house. Choose an agent you feel comfortable talking to, and is really listening to what you are saying. Pick one that is efficient and organized. What you are choosing is a person well versed in negotiation, the rules and ethics of real estate transactions, ambtious without being pushy, and knows the properties available in their area very well.

You will get to the stage where you have made an offer contigent on inspection of the property and that has been accepted by the seller. When that happens your lender will require and insoection of the property and a accessment of the property. Above and beyond the required inbakers inspection, hire an independent inspection for youeself with a licensed plumber, electrition, builder and heat and air person. Ask them what they think of the house, what do they see is might be a problem in 3 or 5 years. Ask them to tell you what they'd tell their favorite uncle about the house. This is for your protection and will give you a true independent evaluation of the property. Trust me when I tell you, not having this done can cost you a huge amount of money to repair or replace vital aspects of the house in the next several years to come. They will give the kind of evaluation to allow you to make a well informed decision about buying the house, walking away or re-negotiating the price. The investment you make by hiring them will pay off in peace of mind.

Find out what the taxes are and estimate they will go up the first few years after your purchase.

Call around and find get ballpark prices for homeowners insurance by providing some basic information on the houses.

Ask for information on heat, water, electric cost on the house.

Read over the disclaimers provided on the house very well.

The time you put into the process will get you closer to what you want at a fair price for you and the seller. That it is the goal, not taking advantage and not being taken advatage of.

Besides Money I think the first & foremost is Credit.Having a great score is the step in the doorway to your home. I would do research on the property you want to purchase. In my view of purchasing a home I would go with a brand new home. Of course its just my opinion but I don't want to be fixing up an old home or having things constantly breaking like underground plumbing,termites, etc.. even though things like this are in every home I would rather no go through so much.

Start looking at houses..and neighborhoods...you may be surprised that a neighborhood you thought was bad was actually pretty nice...and 50% cheaper than the neighborhood you originally wanted...

and contact your insurance agent...they aren't supposed to redline...but they do..sometimes a couple blocks can mean hundreds of dollars...

After you have looked at houses on your own for a while...get yourself an agent, this will smooth things out considerably...