Before you make a decision you should grab your current household budget so you can consider your financial situation and your ability to make mortgage payments.Ask family and friends to recommend experts, like a lawyer and an inspector, who can help with the home buying process.

Think about your lifestyle and how it might affect your choice of home and neighborhood. Then concentrate on current home prices in the neighborhoods you plan to target.You should determine what your needs are and whether owning your own home will meet those needs. However, you should also consider the other factors involved if you consider this a better investment than a whole life insurance plan or other forms of financial venture. The best advice is to look at buying a home as a lifestyle investment, and only secondly as a financial investment.

Making mortgage payments forces you to save, and after 15 to 30 years you will own a substantial asset that can be converted into cash to help fund retirement or a child's education. There are also tax benefits. Like many other investments, however, real estate prices can fluctuate considerably. If you aren't ready to settle down in one spot for a few years, you probably should defer buying a home until you are.

If you are ready to take the plunge, you'll need to determine how much you can spend and where you want to live. Many home buyers arrange financing before looking for a home and most lenders will "prequalify" you for a certain amount.

Prequalification helps you focus on homes you can afford. It also makes you a more attractive buyer and can help you negotiate a lower purchase price. Nothing is more disheartening for buyers or sellers than a deal that falls through due to a lack of financing.