Considering homeownership? Set goals first … please.

So how can you prepare to buy a home?

First, develop a timeframe. When do you want or need to move? Nailing this down will affect the next step, your saving strategy.

When it comes to saving money to buy a house, I offer this little pearl: The more you can save, the better … I know, I know … thank you, Master of the Obvious, right?

Seriously, though … chances are, even if you qualify for a homebuyer-assistance program, you’re going to have to bring some money to the table for closing costs and downpayment. Not only that, you’ll also want to have some cash to buy stuff for your new house.

Now the fun part … set a price range. How much can you truly afford? I can’t stress this enough … Just because the bank says you qualify for a $200,000 loan, doesn’t mean you can afford a $200,000 home. The bank doesn’t know if you’re planning to have four kids or are going to need a new car.

You must also consider taxes and insurance, interest rate, mortgage payment, HOA fees, utilities, cost of commuting, and home maintenance and improvement … it all counts.

Finally, decide what kind of features you want in a home or neighborhood and rank their importance. Include schools, square footage, proximity to retail, commute … everything. You may have to compromise on one or more, and trust me, it’s better to have a good list to help you along.

So don’t make the mistake that many others have made, when buying their first home. Go into the process with a well-formulated plan – it’ll make the process immeasurably easier and way less stressful.