For instance, something as simple as creating a budget that earmarks your spending for a year can help you know what you can afford - while signing up to have a portion of your paycheck automatically deposited in your savings account can help you be certain you'll have cash for the down payment.

Try these additional tips.

• Clean up credit. Make sure none of your bills is past due for at least 12 months before applying for a home loan. Also, check your credit report and clear up any errors.
• Obtain a written preapproval from a reputable mortgage lender before you start house hunting. Doing so helps you know in advance how much home you can afford.
• Decide on the down payment. Today's home loans often only require 3 or 5 percent of the home's selling price. Explore your options.
• Find a real estate agent - whether through a referral from friends or family, or by contacting your local real estate professional association.