First, Get prequalified for a home loan. There’s no sense in looking at homes you can’t afford. Find your price range and stay within it.

Write down the features you require in a home, such as number of bedrooms and bathrooms, garage, formal dining room, family room and living room or great room, and the size of yard. These should be the items you absolutely cannot live without.

Make a list of your preferences, such as the number of stories, the age of the home and amenities such as a pool or fireplace. These are the things that would be nice to have, but are not requirements.

See as many different homes in your price range as you can, either on your own or with a real estate agent. With each home you see, write down as many features and important items as necessary to help you remember the home. Consider how your belongings will look in each home. Will your furniture match or blend with the style and layout of the home? Or will you have to spend money on new furniture?

Take the plunge. There’s nothing as rewarding as having the perfect home.

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Check the selling prices of comparable homes in your area. Web sites such as Zillow and Homegain can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the site of the National Association of Realtors.

See what you can afford. Use Bankrate’s  mortgage calculator to see what your payment would be. To get a sense of the maximum you should spend, use MSN Real Estate’s home affordability calculator.

Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance, use MSN Real Estate’s home affordability calculator. In some areas, what you’ll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 in Utah to $1,372 for unlucky Texans.

Find out how much you’ll likely pay in closing costs. The upfront cost of settling on your home shouldn’t be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees. You can see what closing costs average in your state by looking at Bankrate.com’s annual closing cost survey.

Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.

Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?

Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there’s no landlord to turn to, and these costs can drain your bank account.

So consider whether you’re ready for the expense and effort of homeownership before pulling the trigger.

Tips for First Time Home Buyers