How long do you intend to live in your new home? Will you be starting or adding to your family? Do you have any special requirements such as proximity to stores, public transportation, recreation facilities, etc.? These are the sort of things you should consider when deciding what kind of housing you will need--not just now, but also five years from now. Remember, if you intend on moving again relatively soon, you should get a shorter term when choosing your mortgage.

That means determining how much money you can raise for your down payment and how much you can afford to pay on a monthly basis. Go to a lender to find out the size of mortgage you qualify for and get pre-approved. Better yet, use a mortgage broker to find you the best mortgage rate possible. When calculating the costs of home ownership, remember to plan for homeowner's insurance, property taxes, private mortgage insurance (if required), utilities, repairs, and maintenance.

When selling your home, you should select a real estate agent who can expose your property to the biggest market to ensure the fastest sale at the best possible price. Ask your prospective agents about the different ways they plan to advertise your home. Good agents should use the MLS, national and local promotion on the Internet, yard and neighborhood signs, as well as ads in various newspapers and real estate publications.

As a buyer, it usually costs nothing to hire a real estate professional to help you find and purchase a home--your Realtor will likely get a portion of the commission the seller pays to his Realtor. When choosing an agent, get referrals from friends, relatives, and co-workers, and then interview as many agents as possible. Pick an agent that works in the neighborhoods you're interested in. Listen to your agent, but make your own decision.

Buying real estate is a complex matter and can be especially confusing for the first-time homebuyer. Do yourself a favor and learn as much about the process as you can before you begin. There are plenty of resources on the Internet, and most real estate offices will have pamphlets to explain things in plain language.

If it's not located in a neighborhood you like, your new house will never feel like home no matter how nice it is. There are several factors that go into making a "good" neighborhood for most people. It should be safe, close to things that are important to you, and should offer the services you depend on, such as healthcare and convenient shopping. Ambiance and curb appeal may be particularly important to you. Whatever your criteria, once you have a better idea of the areas you are interested in, find out as much as you can about each area's demographics, crime rate, schools, traffic, etc.

It's up to you to tell your agent what you want and how you want to be involved in the home search process. Some buyers prefer their agents to handpick properties for their consideration; others want to receive the hotsheets on a daily basis so they can comb through the new listings themselves. You should listen to your Realtor's advice, but always remember that you're the boss. And speaking of bosses, it's a good idea for ALL decision-makers to visit the properties your Realtor shows you.

There are no dumb questions. NOT asking questions is dumb.