1. Decide what you can afford. As a rule of thumb, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Prioritize the features on your list from most important to least important.

3. Select where you want to live. Compile a list of neighborhoods you’d like to live in. Some important factors to take into consideration are schools, recreational facilities, churches, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Don't forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Know your credit score! Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. Find out what you qualify for and what you are comfortable with for a monthly payment. Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you. Talk with a qualified, reputable lender.

7. Get preapproved. You might need to gather forms such asW-2's, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced, highly recommended REALTOR® who can help guide you through the process.