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Whether you are buying your first house or your fifth house, buying a home is always a learning experience. The best preparation is knowing what you want, having your finances in order and having a good team of people working for you so that the entire process is productive and minimally painful.

1. Understand Your Wants, Needs, Timing-And What You Can Get for Your Budget

Looking for a house can be an all-consuming experience. You can literally spend every weekend looking at homes if you are not focused on what you want. The best way to be productive is to make a list that will help you evaluate potential houses. Identify your must-haves (e.g., 3 bedrooms), your flexible points (e.g., a study), and nice-to-haves (e.g., a home theater). Confirm that your list fits houses in your price range and adjust your list if necessary. Making your list first helps you to make better trade-off decisions about what you will accept in a house. Finally, understand your time-frame for purchasing a house. If you need to move in a month, then you may have to make concessions because you don't have the flexibility to wait for the right house to enter the marketplace.

2. Get Your Financial House in Order
Before shopping for a house, you need to have control of your finances and have your credit history in the best shape possible. This is important because the better your financial situation, the better your position for actually buying a home. You should have savings for a down payment and to cover purchase-related costs like inspections. If you are self-employed, you should have two or more years of business records to justify your income. Lending institutions want to see that you can reliably make mortgage payments. Additionally, you should check your credit scores and credit history with Experian, Equifax and TransUnion. These agencies report information differently, and banks will look at all three when reviewing your credit history. If there is any incorrect information, you should make corrections. If there are late payments, you should find out the impact on the types of loans that banks are willing to offer you. Finally, you should understand what you can afford for a monthly mortgage payment. You need to consider the actual mortgage cost, property taxes, and insurance. In cases where you are putting down a payment that is less than 20% of the purchase price, you may also have to pay monthly Private Mortgage Insurance (PMI).

3. Find the Right People-People You Trust
When buying

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