The Buying Process Where do I start? So where do you begin? First find a REALTOR® who you will feel comfortable working with. Call several and interview them. You are hiring someone to help you make the first biggest purchase of your life. They will also explain their fudicary duty to you. A member of the National Association of Realtors adheres to a very strict code of ethics. Once you become their client they keep strict confidences and are looking out for your best interest. The Realtor ® you choose should set up a meeting with you to determine your needs.  They should ask questions like:
What kind of house are you looking for? (single story, 2 story, condo, townhouse)
What is your price range?
Have you met with a lender yet to determine affordablity?
Have you made a list of home features that are important to you?
What is your time frame?
Are you ready to move now?
Do you have another home to sell?
How long do you plan to stay in the home?
If you purchase the home and then get transfered or decide to sell after a short time you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell the home. The time that it takes to cover the appreciation varies depending upon economic factors. Most parts of the country have around a 5% appreciation a year. So you would have to stay in the home 3-4 years to cover the costs of buying and selling. If the area has an economic up turn the time would be shortened, and the opposite can also be true.
How long will the home meet your needs?
What features do you require in a home to satisfy your lifestyle now? Five years from now?
Ensure that the home has the ammenities you will need. For example a 2 bedroom home may be great for a young couple with no children but once you start a family you may quickly outgrow the space. Consider a home with room to grow.
Your financial heath?
Would you rate your financial picture as healthy?
Generally a couple of blemishes on your credit report will still make you an ok credit risk, and should qualify you for low interest rates. More than a couple of blemishes and you will still be able to get a loan you will just have to pay higher interest rates.
To determine your price range you should meet with a lender again interviewing 2-3 to determine if you will be comfortable working with them. They can then help you determine the price range. This is one of the most IMPORTANT steps in the buying process. Within 24 hours of application the loan officer should be able to give you a good faith estimate and a pre-approval letter. This puts you in a good position when your agent negotiates your purchase price. In other words the sellers will know you are serious and that you can afford to buy their home.