Here is a home buyer's checklist:

Figure out how much house you can really afford. This is the first step that you should take before even looking for houses. Too often potential home buyers venture out looking at homes, find one they are completely smitten with and then have the heartbreak of realizing they cannot afford that home. Worse yet if you buy a home that you cannot really afford it can spell financial ruin. Here are the steps to take when figuring out how much house you can really afford:

1. Calculate your monthly income and debt.
2. Check your credit report and FICO score.
3. Go online and use a mortgage calculator to figure out what your payment will be.
4. Figure out where you will get your down payment. (Very few lenders offer 100% financing anymore).

Get pre-approved for a mortgage. Again this is vital before looking at houses. In today's tight real estate market you find yourself in a bidding war and the loser is often the person who is not already pre-approved for a mortgage. The steps to get pre-approved are:

1. Choose the right type of mortgage for you.
2. Speak to at least five lenders and mortgage brokers to determine who really has the best deal.
3. Shop around for the best interest rates and programs.

Determine what you want and need in a home. There are a lot of homes out there and venturing out to look at homes can be overwhelming. Having a plan in place as to what type of home you really want can save you both time and money. The steps to determining what you want and need in a home are:

1. Choose a location (downtown, urban, suburban, rural).
2. Choose a type (single family, townhouse, condo, loft).
3. Choose a price range.
4. Choose a size.
5. Choose an architectural style.

Research your target neighborhoods. This will help you determine where you really want to live. You can:

1. Look online for information on schools, crime rate, traffic and zoning
2. Determine your work commute.
3. Scout local amenities, such as parks, shops and restaurants.

Make an offer and negotiate. Once you have found the right home then you can:

1. Determine the purchase price.
2. Be sure to include contingencies, such as financial, inspection or purchase.
3. This is the time to spell out any special requests and repairs you want included in the sale.
4. Determine an earnest money amount.
5. Define a move-in date.
6. Once both parties have come to an agreement on the terms, sign the Purchase and Sale Agreement

Finalize the deal. The work is not over yet! This is when you determine if the house is really what you want. You will need to:

1. Get the house appraised.
2. Get a professional home inspection.
3. Consider getting specific inspections for structural engineering, roof and termites.
4. Use the appraisal and inspection reports to re-negotiate if necessary.
5. Choose a home insurance company.
6. Complete the loan process with the lender.
7. Do a walk-through inspection prior to closing.
8. Set aside cash for the closing costs and down payment.

Close the purchase. The finish line is in sight! Just a few more things to do before your dream home is really yours. You will need to:

1. Review the settlement document at least 2 days before closing to see how funds will be collected and distributed.
2. Get a cashier's check for the amount you need to bring to closing, including the down payment and closing costs.