If you already own a home and are looking to make a change, you may want to consider a number of these factors as well. These steps should make your transaction a little easier.

1. Consider why you are buying a home.

Many people need a larger home because their families are growing, their financial status is improving, they're starting a new home-based business, or they want to be closer to their job. There are also a number of people who are "downsizing" their homes because their children are grown and no longer need the space, they have retired and want less maintenance, or they are looking to take some of their equity out and reduce their payments. Quite often, owning a home just seems to be better than paying rent. Regardless of your reasons, it is important that you address all the questions and concerns you have before you make that commitment.

2. Don't make a purchase if you are planning to move in less than two years.

Making a commitment to purchase a home involves a lot of expense and commitment. The cost of financing, the cost of moving and the loss of your tax benefits are all important considerations. The new IRS tax rules on selling a home state that you can keep up to $250,000 in equity if you live in a home as your primary residence for two of the last five years, and that amount doubles if you have a spouse. How long you plan on living there is an important consideration. Give yourself time to build equity, or the costs of selling combined with the expense of buying a new home and moving may lose you money.

3. Don't buy more than you can afford.

It is easy to want more that you can comfortably afford to buy, but the ramifications of overbuying are tremendous because this is the largest purchase you may ever make, and it will affect your ability to afford many other things. One rule of thumb is to not commit to more than a payment of 25% of your gross income. Another is to never purchase a home that costs more than 2½ times your gross annual income. Say for example, your family income is $45,000 a year. Using the first method, your mortgage payments should be 25% of your monthly income-$937.50. Applying the second method, you would keep your purchase under $112,500, which can be very difficult in many markets-especially in Florida.

4. Make sure your credit report is up to date.

Most people need to obtain a mortgage in order to purchase a home in Florida. Lenders rely on the three major credit bureaus to find out how you pay your bills, so it's important to make sure your credit history is correct and up to date. A few months before you start house hunting you should request a free copies of your credit reports from the major bureaus, Experian, Tans Union, and Equifax. Make sure all the information on your accounts is correct, and if it isn't, start following the bureaus' procedures to correct your record.

5. How much of a down payment can you make?

Simply put, the greater your down payment, the greater your equity, and the easier it will be to obtain financing. Because you've borrowed less, you will have lower mortgage payments. If you can't afford a down payment, there are many lending programs that do not require any down payment at all, but keep in mind that also means it will be more difficult for you to qualify for home loan. There are also loan programs sponsored by the US government and some states that will assist with first time home buyers, veterans, low income families, and others, but you still need to qualify.

6. Get a professional Realtor® to help you.

Buying a home can be a real challenge. There are a lot of regulations, rules and hurdles to deal with, and getting help from a professional-a licensed Realtor®-is the safest and easiest way to avoid making mistakes that could haunt you for years. Professional Realtors® will provide information on neighborhoods, recent sales histories of the areas, lists of choices and many other helpful services that can make the process easier and safer for you.

7. Choose your areas carefully-the community makes a difference!

Home values are based on real estate market trends associated with the popularity and amenities of neighborhoods and communities. All property falls into one of three categories: declining value market, stable value market, or increasing value market. You want to be in an area that is increasing its value for the greatest increase in your property value or, if you are looking for a bargain, choose an area that is in a declining market mode. Remember, the three most important things about real estate are "Location, Location, Location."

8. Get your home loan pre-approved before making an offer.

There is no better bargaining tool than a pre approval letter from a lender when you are making an offer. A seller will often be more motivated to lower a price for someone he is sure can really purchase the home. Getting pre-approved will also save you a lot of time from looking at homes you can't afford. Pre-approval means that a lender has decided that you can afford a house in a certain price range. The lender has agreed to finance a property subject to whether you can afford it at its appraised value, and they agree with the appraisal. Now, this is not to be confused with pre-qualification, which is based on a cursory review of your finances; pre-approval from a lender is based on your actual income, debt and credit history.

9. Only make an offer when you are sure you want the house.

Don't be pressured to bid on a property unless you are sure you are ready. Don't make your decision only because your agent says you need to hurry there are other people looking to buy this house. Don't make an offer until you are sure, and then you want to make sure you add contingencies to your offer. Contingencies are special requirements such as "Subject to appraisal of"¦" or "Subject to inspection." Protect yourself as much as you can.

10. Ask yourself how much should you offer-what is it worth to you?

That is the hardest question a buyer can ask. How much do you think it's worth? How much can you afford? How badly does the seller want to sell? All of these questions need to be considered before you make an offer. If you make a very low offer, the seller may just ignore it. If you offer too much, you may regret not doing a little more bargaining. Always remember, the worst that can happen is they reject your offer. If you really want the house, you can raise your offer, but once you make it you can't really lower it, so give it a lot of thought before you do. - By, Ronald McDonald Florida Licensed Certified Broker.