Before you apply for a home loan, regardless of your credit, it's a smart idea to obtain a copy of your credit report and review the information.  If there are errors or things that need to be addressed, it's easier to address them before you have found a house, than after you have found a house and are trying to close your loan.

An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase.  As long as the home appraises for at least the purchase price, the loan should close.

Getting approved also gives you an advantage over other buyers.  Your firm approval makes it easier for you to negotiate on the price of a home.

Traditionally real estate agents represent the sellers in a transaction. When you are not working with a buyer's agent, they are less likely to negotiate the best price or contingencies for you.

Before working with an agent, establish if they are a buyer's agent or a seller's agent.

Often times the house you find may be in a neighborhood that you're not familiar with.  This just means that you'll have to do a little more research.  If you find a house that you like, ask for a list of the neighborhood properties that sold in the last year. 

• How does your home rank? 

• Is it at the top of the price range? 

• Is it average or on the low end?

Check out the schools - A good school district means your neighborhood will always be valued by families which is a great reassurance to purchase, not to mention the value-add if you have school-age children.

Next, contact the police station and obtain crime statistics.

• Are they acceptable to you?

Talk to the neighbors. The more people you talk to, the better sense you will get of who makes up the neighborhood and how they will effect your time spent in it.

Check out the location of the shopping, police and fire stations, schools, and air traffic overhead. These are all things that might affect your property value or quality of your life.

Ask your Realtor for a copy of the documents you will be asked to sign if you decide to buy the house.  Read them ahead of time so that you'll understand the questions that you will be asked, the things you need to know, and the decisions you will need to make.