Whether you are a first time home buyer or a seasoned investor their are three factors that you must consider when purchasing a property: 1) Money 2) Credit and the most important of all ... 3) MONEY.   1) Money: Your money or monthly budget determines how much house you can afford .   2) Credit: The better your credit the less money you'll actually need.   3) Money: The more money you have the less you have to worry about the first two.   Now that you know the three factors it looks simple, but lets examine each factor closely.   Most important before going out to look at any property " DO YOUR HOMEWORK ". The first step in your home work is... Get your money right. Get prequalified, this is something simple you can and should do yourself. Prequalify is just a glorified term for finding out how much house you can afford based on yourverifiable income and standard debt ratio limits.                      Click here to prequalify yourself           It is common to get prequalifed and preapproved mixed up but their is a big difference in            which I will explain later. Also sit down and get a picture of your overall budget. Make a list of all your current bills and           obligations and then compare it to what it would be based on your prequalifing figure. This            should determine whether you can actually afford a house right now.                      Click here for tips and help creating a budget
Credit is worth its limit in gold.The better your credit the less money you'll actually need. Having good credit leads to lower interest rate which equal lower payments and better loan programs which give you lower down payment guide lines. Know your credit score and what it means
Do the neccsary credit repair to strenghten your score            - A middle score of 575 to 580  with no collections/ charge offs  or lates in the last 12 months will usually qualify you for FHA.            - While you are going through your credit and doing repairs make a wish list of locations and features you want in the house you will purchase.
Congratution you've done your home work Money, its the end all be all. The most important factor in purchasing a home or any real estate is the money. The more money you have for a downpayment the less favorable your credit has to be. If you have enough money forget credit for the moment and pay cash. Go get preapproved. A pre- approval is the process in which a lender gathers your income documents and credit profile to make a loan decision. Loan officers and brokers are plentiful, i suggest you start with your own banking institution.                                    click here to get help finding a lender near you
Once you have done your home work;you know how much house you can afford, you know your credit score is in good standing, you're preapproved. You are now ready to find a property. Get your approval letter and decide whether you are going to use and real estate agent or do it yourself, either way time to go house shopping.