Figure out how much you can afford - What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. Generally, a lender will want your monthly mortgage payment to total no more than 29% of your monthly gross income (that's your monthly income before taxes and other paycheck deductions are taken out.) You also need to consider current loan interest rates. The lower the interest rate, the more expensive the home you'll be able to afford.
Shop for a loan - Save money by doing your homework. Talk to several lenders, compare costs and interest rates, negotiate to get a better deal. Consider getting pre-approved for a loan.
Create your home wish list - Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search.
Shop for a home - Now you really begin house-hunting. Your real estate broker will be able to find listings for you, based on your wish list. You can do also your own looking, and then ask your broker to show you the house. Start with the Internet. Pick up real estate flyers at local grocery stores and convenience stores. Read the real estate sections of your local newspaper. Drive around neighborhoods that interest you and write down addresses where there are "for sale" signs. Go to open houses.
Building a Home - If you want to build a new home, there are other things you need to know before you begin. Learn about construction standards and about buying land, so you know your rights.
Make an offer - Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.
Get a home inspection - Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs. You will have to pay for this inspection, but it could keep you from buying a house that will cost you more in repairs. If you are satisfied with the results of the inspection, then your offer can proceed. If you aren't, you may want to negotiate, asking the seller to pay for certain repairs or asking for a lower price.
Shop for home owners insurance - Lenders require that you have homeowners insurance. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance.