There is a lot of press these days about the foreclosure mess. Still, home ownership remains a dream for many Americans. Here are eight ways to prepare to purchase your version of home-sweet-home.

1. Pull your credit report. Now is the time to clean it up. Request in writing to all the credit bureaus that all mistakes are fixed. Get ready: most credit reports have errors.

2. Start researching prices in your area. Some good websites for this include realtor.com and zillow.com

3. Work down your debt. A lot of lenders look at your debt-to-income ratio. Along the same lines, don’t suddenly purchase some other large thing, like a new car.

4. Save, save, save. Hopefully you already have a down-payment. Still, you’ll need extra cash for closing costs and other expenses when you’ve found the right house.

5. Figure out how much you can afford before you start shopping. How? Have your bank pre-approve you. That’s your range. Don’t borrow more than you need or can realistically afford considering the rest of your budget.

6. Estimate your down payment and closing costs. Your lender will help you do this. Even with good faith, brace yourself to pay a little higher just to give yourself peace of mind. It’s lovely to find you have to pay less, but worse to discover when its all said and done that you actually need to pay more.

7. Organize your paperwork. You’ll get a LOT of paperwork. A collapsible, expanding file that closes shut works well. If it fastens you can carry it with you and not worry about items falling out.

8. Start shopping for a realtor to act on your behalf. As a first-timer I think a realtor is well worth his or her commission. Make sure you find one that you like and trust.

What’s your view of the housing market? Great time to buy, or hold off? Discuss it here or in any number of our real estate groups.

This week I close on the purchase of my first home! Hooray!

It’s a little stone cabin with a sordid past: in the 1800’s it served as a “house of ill-repute”. With colorful history like that, what better place to kick up the feet (ahem - onto a coffee table!) and call my own? Now I just need to learn how to play the banjo…

There was a lot to learn as a first-time homeowner. For starters, who knew all the unexpected expenses in the final hour? Now I know why it takes a few weeks to close on a property!

Here are just some of the people you have to pay. Not all will apply to your situation but keep in mind these are all in addition to your down payment expenses:

Realtors - Some say you can save the fees doing it yourself. But, as a first timer I think my realtors were well worth their fees. No one knows the market better and they’ve been immensely helpful in other areas, too.

Inspectors - Yep, lots of people come into play here. First, the bank requires that you show what your buying is worth it, and safe. Some inspectors my house required: appraisal, structural, pest, radon-gas and lead-based paint inspectors (because it’s an old home).

Homeowner’s Insurance - You have to prove to the bank that your house is covered for disaster. You can’t close on property without it.

Title Clearance and Insurance - This makes sure that the owner can legally sell the property, and ensures that no one can later claim the property is in fact, theirs, not yours.

New utilities - This is a critical but sometimes overlooked part of the process. Certainly, you want to be able to flip on the switch for water, electricity, or gas the moment you arrive.

Legal fees - Some states require lawyers for one or both parties (mine does).

Miscellaneous fees - These include items like fees for pulling your credit report, processing your loan, recording fees, city/county/state/stamp fees, courier or wiring fees, loan underwriting fees, flood insurance, taxes.

Long list, huh? No wonder people say this is stressful. It is! There is that momentary cashflow crunch moving money between savings and checking, for example. The last thing you want to do is bounce a check.

(Which is why I ran to the bank in a panic to deposit $4!)

The good news is that despite the long list everyone involved in the chain is a professional. Some of the fees are negotiable or aren’t very expensive.

My advice? Make sure you clearly communicate your budget with all the many people involved in the process. I told them how much I had budgeted for down payment and closing costs and structured my financing accordingly. I did my homework and kept good records so this helped, too.

If you’ve got your eye on your first home, make sure to start with the basics. Save as much as you can. Earmark some for your down payment and some for closing costs. Keep your credit report clean in the process. It’s a buyer’s market!

Want to discuss buying your first home or home ownership? Check out these great Geezeo groups: Home Improvement Projects, Pay Down That Mortgage, First Time Homebuyers, Active Rainers on Geezeo, and CASHFLOW the game.