You need to become an informed buyer if you decide to w buy your home. This may be the largest purchase you will ever make, so do your homework!

First step is research the areas where you want to live.

• What neighborhoods do you like?
• Have you walked or driven through the neighborhoods at different times of the day?
• Are there good schools nearby?
• Is there a crime problem in the area?
• Is public transportation nearby?
• What amenities are nearby?

What kind of property do you want?

• A single family home or a condo?
• Do you want outdoor space?
• Do you want a washer and dryer?
• Do you need a great kitchen?
• Do you need parking?
• What style of property do you like?
• Is a view important to you?
• Do you need lots of sunlight in your home?
• Are you willing to take on renovation projects?

Know your rights as a homeowner. Consumer Financial Protection Bureau is a good source of information.

What can you afford? Look at real estate listings of your targeted neighborhoods through Zillow, Realtors.com or local search engines. Research listings for several months to give you a feel for prices, what you like and what you can afford.

How big of a down payment is needed to buy the house you want? The Rule of Thumb is you should have 20% down, but this is probably not realistic. In 2013 down payments averaged 7.5%.

So, how big of a mortgage will you need? There are lots of calculators out there. In addition, you need to make a list of costs that come with home ownership – taxes, utilities, insurance, HOA fees, routine maintenance, trash removal, and repairs. Does the mortgage payment and other associated costs add up to reasonable housing costs for your income and your financial plan?

If you still think home ownership is a viable option, you should research mortgage lenders.

You will need to make the following decisions:

• What is the length of the mortgage loan you want – 15, 20, 25, or 30 years?
• How big of a down payment do you plan to make?
• Do you want a fixed rate mortgage or an ARM (adjustable rate mortgage)? Currently ARMS are only about 10% of the market.

Conventional mortgages are sourced from mortgage lenders – banks and specialized mortgage loan lenders. Conforming conventional loans follow the terms of Fannie Mae and Freddie Mac. Required down payments are from 5-20%.

FHA (Federal Housing Authority) also offers mortgage loans. They have a special program for first time homebuyers. The FHA offers lower credit requirements and lower down payments as little as 3%. The FHA also has a program know as HAWK – Homeowners Armed with Knowledge.

When you are well informed about your needs and the housing market you can begin your search for your home.