So it's finally time to realize your dream of buying a home. This is a major step in your life, and your home will likely be your biggest asset ever. What's next, and how are you going to make the most of this new adventure?

First-off, be sure to get pre-approved with a lending institution. The final mortgage approval can't happen until you have a specific home you are proposing to buy, but a pre-approval tells you who will lend to you and what you can afford. This involves giving a bank your financial information such as your credit history, a list of debts and assets, job history, tax forms, etc. Once they've assessed how much you earn versus how much you pay for expenses, and consider your job security, the bank will tell you how much mortgage you can afford. Then you know what price range to look at!

Chances are you've also been working on saving up a down payment. If you haven't yet saved as much as you'd hoped, you may still be able to buy a home. Many banks and other lenders are willing to consider you if you only have 5%, or even less, for a down payment.

When looking at homes, consider your future, but also resale value. Realize that in order to make any money in real estate, you must keep a home for at least a few years. Although there are some extreme cases wherein people made tons of money flipping a home within a very short time, or lost it all in a horrible market, as a general rule, the longer you own the more equity you earn. So choose a home in an area you will be stable in for a while. Sure, you can always rent it out, but it takes a lot of management skill to pull off being a landlord, not to mention plenty of money to fix things for your tenants, and pay your mortgage during times the home is empty or your lousy tenants are in default.

Considering resale value involves a few things. Before you buy, it's a good idea to have the home inspected. This avoids you discovering things later, like when you're ready to sell, that may bring the value down. Also, look at the area. A great home in a crappy neighborhood may be hard to re-sell. What are the schools like? What amenities are nearby? Sometimes it's better to get a smaller home in a better neighborhood, and invest a bit of time and money into making it a true gem. Remember, with a bit of time, money and focus you can always improve the home, but you probably won't be able to do much to change the surroundings.

Once you've purchased your home, be careful to keep it. Foreclosures are damaging our economy, but they are preventable. Firstly, buy what you know you can afford. Buying something too expensive can quickly become oppressive if you suffer any loss of income. Also, avoid the temptation to extract all your equity in the form of loans. If the market changes, you may find yourself owing more than you can sell your home for.

Anne Eliason is a dedicated professional specializing in Phoenix AZ real estate. For information on real estate or for help with all your Phoenix Valley relocation needs, visit Anne, your Phoenix real estate agent online, at Phoenix-Valley-Real-Estate.com.