A home purchase is the largest and most significant investment most of us would make.  It would be helpful to consider the following questions before making your final decision:

Are you ready to own a home?
This means not just your financial capacity but your emotional and psychological readiness to own a home as well, since home ownership involves a big responsibility and commitment.   Get a copy of your credit report and make sure that lenders will like what they see.  Which leads us to the next question.

How are you going to finance your purchase?  
Shop around for mortgage rates and terms.  It is very important to remember not to over-extend yourselves – that is, do not borrow more than what you can afford to pay in monthly amortization.  In financing, the rule of thumb is your monthly amortization should not exceed 30% of your total family monthly income.  It is a wise buyer who will choose the best-looking house in his or her price range, and then move up to a better one later using the equity build-up and appreciation from the re-sale of the old house.

How much can you afford? 
Perhaps the easiest way to find out is to ask yourself what monthly payment you can afford to pay after you have put up your equity or downpayment.  Meet with your financial advisor or mortgage broker to discuss your options, and get prequalified for a loan.  This will save you time later when you might need to move fast to close the deal, especially if there are other interested buyers.  It also lets the seller know you are serious about home buying and that you have the resources to make the purchase. 

Hire a real estate professional.  There is much to be said about the importance of this step in the buying or selling process.  Working with a licensed real estate professional will help you through the process of finding the property, handling the legal paperwork, getting the best financing scheme and eventually closing the transaction.  Engaging the services of a knowledgeable agent will be time-saving and will give you a wider selection of properties to choose from, making the whole process less stressful for you.

Search and visit properties.  Have your estate agent arrange for as many showings and home inspections as you can possibly go to ,  and  take note of the houses which match your price, feature and location criteria.  Rate each house as you go through it.  Do not keep more than four choices in your shortlist  in order to simplify the selection process.  Do not be discouraged if you do not seem to find suitable properties in your first few visits.  Take heart – your dream house is out there… You just have to persevere to  to find it!