Ask yourself these questions:

• Do I have a steady source of income? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
• Do I have a good record of paying my bills?
• Do I have few outstanding long-term debts, like car payments?
• Do I have money saved for a down payment?
• Do I have the ability to pay a mortgage every month, plus additional costs?

How do I begin the process of buying a new home?

    Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment? How much space do you need? What areas of town do you like? After you answer these questions, make a "To Do" list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the "Homes" section of the newspaper.

How many homes should I consider before choosing one?

    Visit as many houses as it takes to find the one you want. On average, homebuyers see 15 houses before choosing one. Just be sure to communicate often with your real estate agent about all of the features you are looking for. Such communication will help avoid wasting your time.

    The lender considers your debt-to0income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 41% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.

How can I find information on the property tax liability?

    The total amount of the previous year's property taxes is usually included in the listing information. If it is not, ask the seller for a tax receipt or contact the local assessor's office. Tax rates can change from year to year, so these figures may be approximate.

What other tax issues should I take into consideration?

    Keep in mind that your mortgage interest and real estate taxes will be deductible. A qualified real estate professional can give you more details on others tax benefits and liabilities. 

    Yes. A paid homeowner's insurance policy (or a paid receipt for one) is required at closing. Arrangements will  have to be made prior to that day. Plus, involving the insurance agent early in the homebuying process can save you money. Insurance agents are a great resource for information on home safety and can give tips on how to keep insurance premiums low.

What other issues should I consider before I buy my home?

    Always check to see if the house is in a low-lying area, in a high-risk area for natural disasters (like earthquakes, hurricanes, tornadoes, etc.), or in a hazardous materials area. Be sure the house meets building codes. Also consider local zoning laws, which could affect remodeling or making an addition in the future. Your real estate agent should be able to help you with these questions.

Are there special mortgages for first-time homebuyers?

    Yes. Lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who do not have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have long-term debt, or have experienced income irregularities.