Determine what you can afford before starting the hunt.

1. Do not buy if you cannot stay put. If you cannot commit to remaining in one place for few years, then owning is probably not for you, at least not yet. With the costs of buying and selling a home, you may end up losing money if you find that you must sell shortly after purchasing your property.

2. Start by shoring up your credit. As you may need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford. The rule of thumb is that you can buy a home when the monthly payment does not exceed 30% - 36% of your household’s monthly gross income.  

4. Don't worry if you cannot put down the usual 20 percent. There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as Zero percent of the purchase price.

5. Buy in a district with good schools. In most areas, this advice applies even if you do not have school-age children. Reason: When it comes time to sell, you will learn that strong school districts are a top priority for many homebuyers, thus helping to boost property values.

6. Get professional help. Even though the Internet gives buyers unprecedented access to home listings, it is still a good idea to use a REALTOR. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate. When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for five to seven years or more -- it may be a better deal to take the points. The lower interest rate will save you more in the end. Consult with your agent.

8. Before house hunting, get pre-approved. Getting pre-approved will you save yourself the grief of looking at houses you cannot afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt, and credit history.

9. Do your homework before making an offer. Your opening offer should be based on the sales trend of similar homes in the neighborhood. Before making your decisions consider sales of similar homes in the last six months. Your proposal should be based on the real value of the home. If the home is priced correctly, offer properly. If the home is over-priced, submit your proposal accordingly. If homes have recently sold at 5 percent less than the asking price, you should make a bid with that in mind, not forgetting the real value of the property. 

10. Hire a home inspector. Your lender will require a home appraisal. The appraisal is the bank's way of determining whether the house is worth the price you have agreed to pay. Separately, you should hire your own home inspector to review the property, prepare a report, and suggestion possible solutions to discovered “items of question.”