The real estate agent should be: amiable, open, interested, relaxed, confident, and qualified. Learn the agent's rates, methods, experience, and training. In the United States, sellers pay the Realtor commission while buyers may pay a fee for having the Realtor represent them. Look for a Realtor who lives local, works full-time, closes several properties per year, and has a reputation for being busy. Read more in How to Select a Realtor

Most lenders suggest that you pay no more than 38% of your monthly income towards your mortgage and debts combined. This means, on any given month, no more than 38% of your paycheck goes to paying back loans. You should use an online Home Affordability Calculator to find your own sweet spot. However, for a good idea of the house you can afford, tally up your current monthly bills, including credit cards, student loans, etc., and compare them against your income in the following sheet:

Scout out what's available in the vicinity. Look at prices, home design, proximity to shopping, schools and other amenities. Read the town paper, if there is one, and chat with the locals. Look beyond the home to the neighborhood and the condition of nearby homes to make sure you aren't buying the only gem in sight.

Visit a few open houses to gauge what's on the market and see firsthand what you want. Pay attention to overall layout, number of bedrooms and bathrooms, kitchen amenities, and storage. Visit properties you're seriously interested in at various times of the day to check traffic and congestion, available parking, noise levels and general activities. What may seem like a peaceful neighborhood at lunch can become a loud shortcut during rush hour, and you'd never know it if you drove by only once.

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Look at comparable houses in the neighborhood. If you are unsure about the price, have the home appraised by a local appraiser, who also looks at comparables. When appraising a home, appraisers will look for comparable homes or “comps” in the area that have similar features, size, etc. If your home is more expensive than the comps, or the appraiser has to find comps in a different subdivision or more than 1⁄ 2 mile (0.8 km) away, beware! Never buy the most expensive house in the neighborhood. Your bank may balk at financing the home, and you probably won't see your home appreciate in value very much. If you can, buy the least expensive home in a neighborhood — as homes around you sell for more money than you paid, your home's value increases.