Whether you are buying your first home or upgrading to a larger home, you need to do your homework. Buying a home is your largest investment  and the extra research will help you make the best decision possible.

1. Set a budget. What the mortgage officer says you can borrow is different from what you truly can afford. consider your lifestyle. Do you like to travel? How many children do you have? Do you like to dine out? All of your monthly expenditures need to be considered. Your total monthly debt, including your mortgage, should not exceed 36 percent of your gross monthly income.
2. Shop for a mortgage. While it is important to be pre-approved for a mortgage, it is more important for you to understand the terms of the mortgage. Not all mortgages are created equal. Have your loan officer explain the costs and benefits of different loan programs. It is also helpful to check with different lenders so you can compare interest rates.
3. Choose a community that meets your needs. Do you want to live near shopping? Are you more urban than suburban? If you don't like your location, you will be unhappy. Whether or not you have children, surrounding schools are important. If you have children, you want them to go to a good school. If you don't have children, you need to consider the effects the surrounding schools will have on resale value.
4. Know the real cost of the home. Ask your Realtor to provide you with a Comparable Market Analysis (CMA). The CMA will tell you how much other comparable homes in the area have sold for, so you can know if you are getting a good deal.
5. Think about resale. More than likely, you will not live in this house forever. And, the features you find charming may not be appealing to future buyers. This could make selling the home difficult.
6. Choose your Realtor wisely. Most people are comfortable using a recommended Realtor. However, you don't have to go with the first Realtor you meet. It is important to meet with a few Realtors until you find one who is experienced with the type of neighborhood you are interested in.
7. Check out the neighborhood. Most people shop for a home during the day. However, it is a good idea to drive through the neighborhood at different times of the day, including at night, to be able to gauge the traffic, noise and what life is really like in the neighborhood.
8. You don't have to purhcase the most expensive home on the block. If you purchase a $250,000 home, but it is surounded by $100,000 homes, your home value will be lowered. Generally, it is wise to purchase a home that is surrounded by comparable homes.
9. Get a home inspection. Quite simply, this is some of the best money you can spend. If you are spending $250,000 on a home, isn't it worth the inspection fee of $300 to $600 to know if the home is sound? It is also in your best interest to use an independent inspector who is a member of a professional organization.
10. Don't forget about closing costs. Closing costs can run 2 to 5 percent of the home's purchase price. Closing costs can include loan origination, legal costs, property taxes, escrow fees and title and home owners insurance. Ask your mortgage lender for an estimate of your closing costs so you can include these in your budget.