Unless you plan on paying with cash, your first step will be to get a pre- approved loan. Once you get pre-approved, you will know with more accuracy the price of the home you can afford.

While you can never know how much a home is worth exactly, your agency has been trained to use comparable properties to determine accurate pricing of homes. He or she will look at houses that have recently sold in the area that are similar to the one you are buying to ensure that you are paying a fair price.

• Pre-qualification: Getting pre-qualified for a mortgage gives first-time homebuyers an indication of how much they “might” qualify to borrow. This mortgage amount is not guaranteed because no information has yet been verified. A letter from the lender may only state that you are “likely” to be approved for a mortgage.Pre-approved: Better yet is getting pre-approved for a mortgage, which is based on a real credit score, and it also puts real estate agents and home sellers at ease. The buyer has more to offer when making a deal and in a competitive market this can be a definite plus.

You can always change a house and fix things you don’t like, but the neighborhood is there to stay. It’s important that you like the environment you’ll be living in the next 10, 20 or 30 years. Your Realtor can help you find out key information, such as community amenities, school rating and how busy traffic is where you’ll be living.