Shonda: Before starting a home search, you should be educated about your options. Your personal options are dictated by your credit scores (FICO), credit/debt history, and employment history. These pieces of information will dictate what lending programs are available to you, how much home you can afford to purchase, the interest rate you are quoted, and ultimately if borrowing is even possible at the current time. Because of the importance of knowing this information, you need to start your first home search with a qualified lending professional. They will pre-qualify you for a purchase/loan and guide you through the entire transaction, the closing, and beyond.
There is presently a First-Time Home Buyer's Tax Credit available on homes closed now through December 1, 2009. FHA requirements for lending are generous currently, as are VA and USDA-RD loans. Your lender will be able to determine whether any of these loan programs (or others) are available for you to take advantage of during your upcoming purchase. Without knowing your personal information/credit scores it is hard to be more specific with answers. Ultimately, finding and working with a reputable lending professional will address and answer your specific questions more fully.
If you have other questions or needs, please don't hesitate to write. Best of luck to you ...

Hud and FHA have excellent information on the process on buying a home and will answer your questions about the order/steps you should take... http://www.hud.gov/buying/index.cfm
http://portal.hud.gov/portal/page?_pageid=73,1827624&_da…

The Banks/Gov have also created sites for the public with their properties for sale (REO/FORECLOSURES)
for the public and these sites have all the purchase/ bid information included..
Sites like these... http://www.nhmsi.com/ ... http://reosearch.fanniemae.com/reosearch/
http://www.pasreo.com/pasreo/public/propertySearch.do ... http://www.wamuproperties.com/

The links to these sites are provided here.... http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp ... http://www.biggerpockets.com/bank-reo.html

Good hunting Dunes

Shonda,
Miss Ramachandran gave you excellent advice. The first step is to talk with a lender, such as my firm, who can verify what you can afford and give you a Written Commitment Letter stating you have applied, given all required documentation and have been approved by the firms underwriter. I can typically get this process done in less than a week. The commitment letter gives you peace of mind that you are not looking at homes you cant afford to buy. You then pick a realtor , who at this point has negotiating power to lower the asking price and or ask for up to 6% seller's contributions to help you pay for closing costs because you are approved. Plus as a first time home buyer you qualify for the $8K tax credit. Please feel free to call me anytime if you have any further questions. Frank Olguin 561-386-9731. Mortgage Banker AmericaHomeKey Inc. , Folguin@americahomekey.com.

Hi Shonda,

The first step is to identify how much you want to spend. Get preapproved from your bank or lender or consult a good mortgage broker. Then you know how much house you can afford. Don't let anyone intimidate you. This is probably the biggest investment you ever make, so ask all the questions you want.

Find a Realtor you are comfortable with. Someone you feel will look out for your best interests. Stay in the driver's seat. Make note of everything you like and dislike in a property. Identify the area and what type of property you would like to own.

Ask questions of your Realtor and Trulia whenever you need to.
Here are some websites to check out.

http://www.kiplinger.com/columns/starting/archive/2008/st102…

http://www.federalhousingtaxcredit.com/

http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7

http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Hope you find this helpful.

Good Luck!!!!!

Genevieve Ramachandran
pgrealty@hotmail.com
800-819-2788
941-268-1511 http://www.puntagordarealty.com