So you want to buy a home: "... with proper planning and the help of qualified professionals, the home-buying experience can be a triumph, not an ordeal." (Life in America).

• Author: Sloan, Bill

OWNING A HOME continues to be the American dream. While most people understand some or all of the benefits of home ownership, purchasing a home can be an overwhelming process for first-time buyers as well as those with experience. Indeed, it generally is one of the major (if not the major) financial transactions of a person's lifetime. Often filled with emotional highs and lows, it requires considering many options and making numerous important and often difficult decisions.

How can you prepare for such a crucial experience? What should an informed homebuyer know to ensure the most positive outcome? Topping the list of priorities is to do your homework before you set out upon your search. Then, surround yourself with a team of professionals to assist you, one that is typically "quarterbacked" by a real estate agent and includes a mortgage lender, home inspector, real estate appraiser, and, frequently, an attorney.

Do your homework. The logical starting point is determining if it's the right time to buy. Proceed, say many experts, if you meet these criteria: You need an attractive tax deduction, can afford the monthly payments, plan to stay in the house long enough for the appreciation to cover your transaction costs, and can handle the maintenance expenses.

Next, make a wish list. Write down what you require and what you want in a home. For example, how many bedrooms and bathrooms do you want? Do you need a large dining room for entertaining? Is a home office or den essential? What about a basement for storage? How about a garage or off-street parking?

Then, think about location. Will an urban, suburban, or rural environment best suit your lifestyle? How far are you willing to travel to and from your job? Are nearby public transportation, a major highway, shopping, or recreational facilities important? Are schools a consideration?

Note down everything you can think of and, when you are done, divide your list into three categories: "must have," "hope to have" and "dream of having." While it is unlikely that you will get it all, you should be able to come as close as you can with some prioritizing.

Yet another key step early on in the homebuying process is determining how much you can afford to spend. Roughly speaking, the guideline is up to three times your annual gross household income, according to many experts. More precisely, the price you can afford to pay will take into account these factors: your income; the amount of cash you have available for the downpayment, closing costs, and cash reserves required by the lender; your outstanding debts; your credit history; the type of mortgage you select; and current interest rates.

Retain a mortgage professional. Determining how much of a mortgage you can afford is best handled by a mortgage professional. Shopping for the lowest rate is merely one consideration in selecting a lender. You will have an enormous array of mortgage products and methods of financing from which to select. A good mortgage lending professional can find out what is best for you and tailor a financial plan so that you can make the most of your available dollars.

Explore your borrowing options and secure a mortgage preapproval from a lender before you go searching for a home. This "up-front" information provides a reality check so that you will be looking in the price range you can afford. Moreover, when you make an offer on a home and it is accepted, all you likely will need to go forward with the financing is an appraisal.

Don't confuse mortgage preapproval with mortgage prequalification. You can get prequalified simply by talking to lenders on the telephone or providing information on the Internet. Remember, though, that the information you provide is not verified. In contrast, getting preapproved for a mortgage is almost like going shopping with a check in hand. It demonstrates to the seller that you can afford to finance the home. That is because the information you furnish is verified, meaning that the lender will ask...