You need a working knowledge of the home buying process and its costs from mortgages to inspections to title and escrow. Bone up on the glut of information available on the Internet, at free home buying seminars and workshops and use the vast library of real estate guide books. Begin to learn the ropes well before shopping. There's a lot to learn. Get preapproved for a mortgage that you can truly afford, not what the lender is willing to risk.
Buyers often make the mistake of entering a buyer's market with no cash backing.
Imbued with a false sense of power, some don't even get preapproved. Even sellers anxious to unload their home aren't going to wait for the money to show up. Know your market. A seller's market doesn't become a buyer's market over night and if you aren't tracking indicators during the transition you won't see the change coming. The five key indicators to watch are interest rates, building permits, home sales, loan defaults and foreclosure sales.