Becomming familiarized with your credit history well in advance of a purchase, 1 to 2 years, is highly recommended. That way you have time to make improvements and build credit so when you apply for a loan you will have access to better rates and lower payments, as well as a number of loan programs to choose from.

Next, you will want to enlist the help of a Realtor you like and trust. An experienced Realtor will not only show you homes, but will be very helpful when you are submitting an offer and negotiating the terms of your purchase agreement. Buying a home without a Realtor is like going to court without a lawyer. I would not recommend it.

How long do you expect to be in your first home? This is an important question because most people, especially first time home buyers, move on average every 3-5 years. For example, the lower introductory rate of an adjustable rate mortgage may be smarter if you know you will be out of the home prior to the first rate change. Be sure to ask your mortgage professional to explain which loan programs make the most sense for a short term stay versus living in the home forever.

One good idea is to attend several open houses. Start getting a feel for what you like, and what you don't like. Also, see what homes are selling for in your area. Once you know your local market, you are in a much better position to make an offer.