Buying a home is a very rewarding and stressful time. It can be so exciting planning and dreaming about your very own home. You think about where the furniture will go and the flowers you will plant in front. The stress can be unbearable. There is so much to worry about, so much to come into place.

Your home buying experience depends on you. It is easy to just go with the flow and let things happen. But this often adds stress. The best way to enjoy the experience is to be well prepared and well informed. Breaking the process up into twelve steps can help to relieve a lot of stress. Focusing on each step as it happens can break the whole experience down into easily manageable portions.

Here are six steps that will help you prepare to buy a home.

1. Figure out how much home you can afford.

Before you even set out to look for “For Sale” signs, you need to know what type of home you can afford. There isn’t much sense in going and looking at $300,000 homes if you know that you can’t possibly afford that much.

Start by looking at your budget. Figure out how much you can spend each month towards housing costs. Remember that your housing costs aren’t just your mortgage payments. Include your insurance, taxes, association fees and maintenance costs.

You should be able to get a close idea of how much a month you can afford to allocate towards housing. Go ahead and pull your credit report, three years worth of taxes, your payroll reports and all of debt accounts. You will need these in the next steps.

2. Select a lender.

You should shop around for a lender. Start by visiting your local bank. Call various other banks and credit unions for rate information. Make sure that you are comparing apples to apples. Tell the lender exactly what you are looking for. For example, if you want a 30-year fixed rate mortgage, get quotes for a 30-year fixed rate mortgage.

Ask your friends for recommendations as to what lending institutions or loan officers they have had successful mortgages through. You want to not only find the lowest rates and best terms, but excellent customer service as well.

You can also ask your agent for recommendations. Many banks will specialize in different types of loans. Some lenders may specialize in loans for people with marginal credit and some will offer great loans for self-employed borrowers. Shopping around is the key to finding the best mortgage for your financial needs.

3. Meet with the lender.

Often, you may be meeting with a loan officer while you are shopping around. You need to do this to make sure that you understand every aspect of securing a mortgage through a lender.

Once you have chosen a lender to work with, you need to be pre-approved. This is simple to do and gives you an upperhand in negotiations on your new home. Most lenders will pre-approve you up to a certain amount even before you have selected a home.

This is not prequalification. Prequalification simply means that you might be approved for a loan of certain amount. Pre-approval means that you are approved pending a property and appraisal. This makes you sure that you have the financial backing once you find a home, and the seller knows that you are serious, qualified buyer. It is as if you have cash in hand.

4. Select a Real Estate Agent.

This is the most important step outside of securing financing. You are becoming a partner with your agent. They will know your personal and business needs. An agent must be someone you trust. He or she is the key to finding what you want in the area you want for the price you want.

Working with a team, instead of an individual agent, can be beneficial. Don’t be afraid to ask for reference, most agents expect that you will. Make sure that you contract them as a buyers’ agent. You want to be sure that they are representing only you and not the seller too.

5. Meet with your agent for a consultation.

This is where you and your agent will discuss exactly what you expect along the way. You will discuss exactly what type of home you are looking for in what area and at what price range. A time range should be set up. Be prepared to wait 30 to 45 days between contract and closing.

You will discuss when you can view homes and how you prefer to be contacted. You will also discuss financing options, which you have already taken care of. All the paperwork necessary will be exchanged and explained. You will conclude the meeting by signing a buyer broker agreement.

6. Look at homes.

This is where the real fun begins. But don’t look at too many homes. Eventually they will all begin to run together. Have your realtor only show you homes that fit your specifications. It can help to keep a notebook of homes that lists the house and what you liked and disliked.

Now that you've read the Mortgage Loan Insider home purchase advice, all that is left is to go out and follow it.