For many people, buying their own home remains out of reach for a lot of people, even though housing in many areas of the country is as affordable as it's ever been. If you're not prepared to buy a house now, then affordbility doesn't matter.

If you are planning to stay in the same house for a few years buying a home can make perfect sense. What if you're a first-time buyer or you haven't owned a home in a while, how do you prepare for what is often the largest purchase you'll ever make? Simple steps can help you move from renter to home owner. First familiarize yourself with your financial health. If you know what lenders are looking for before you apply for a loan, you'll have a greater chance of getting it. Your time will not be wasted looking at homes that aren't in your price range. You will know what you can afford.

Develop a budget. There are many programs available that will allow to create and follow a a budget.

Review your credit credit history. If you have no idea how your credit looks, then it's time to check it out. Checking your own credit will give you a chance to clean up any problems or discrepancies on your report before you actually start applying to lenders. Go to www.annualcreditreport.com where you can obtain a free consumer copy of your credit report once a year. You can choose to get a copy from all 3 national credit bureaus at once or one from each different bureau every four months during a 12 month period. Another information source you might want to check out is the Consumer Handbook to Credit Protection Laws by The Federal Reserve at www.federalreserve.gov/pubs/consumerhdbk. This handbook explains how the consumer credit laws can help you shop for credit, apply for it, maintain your credit standing, and, if need be, complain about an unfair deal. This handbook also explains what you should look for when using credit, details that creditors look for before extending credit, and reviews the laws’ solutions to discriminatory practices that have made it difficult for women and minorities to get credit.

Cut back where you can and save it. If you're spending $5 on a latte five days a week, think about brewing your drink at home and putting that $25 a week into a savings account. It adds up quicker than you think.

Stay focused on the goal. Keep in mind that by cutting costs, you are investing in a future purchase that will benefit you and your family. No more throwing money away on endless rent payments. Owning your own home and, being able to purchase it while interest rates are at historic lows, is a great accomplishment.