Homeownership can bring both financial and emotional benefits. While the homebuying process can seem complicated it doesn’t have to be overwhelming. It can take a little time and effort, but with a methodical approach to the steps you’ll be turning the keys to your first home before you know it.

Get Familiar With Credit

The number one priority for current and potential borrowers is to get on top of your credit history and score. Getting on top of your credit score is an important first step to homeownership. A higher credit rating brings opportunity for lower interest rates and financial savings.

It’s important to get your scores from the top three credit reporting bureaus: Equifax, Experian and TransUnion. By federal law, you are entitled to a free annual credit report which can be obtained at annualcreditreport.com. If you’ve already used your free annual report you can purchase additional reports from services like My Fico.

Once you’ve checked your reports for errors, discrepancies and areas you can improve your score set up a plan to improve. Generally speaking, a credit score of 620 is the line between prime and subprime. If your average score is below this mark you’ll definitely want to improve it before applying for loans. Any improvement you can make on your score will help you save on interest so it is worth the effort. See also How Credit Score Affect Mortgage Rates at Bankrate.

Know Your Price Range

Banks and lenders use formulas to determine a homebuyers borrowing and repayment capabilities. Your credit history, income and savings are all considerations that are factored in. The good news is you can easily figure out how much mortgage you qualify for and how much how you can afford with online tools like Bankrate's How Much Home Can You Afford? Calculator. Once you've gotten an idea of your price range stick to it. Be wary of lenders who want to lend you more than you want or need.

Know Your Rights

Borrowers, and renters, are protected under the Fair Housing laws which prohibit discrimination in real estate transactions based on race, color, national origin, religion, sex, familial status and handicap. While enforcement of Fair Housing laws has improved how protected classes are treated in the housing industry, there is still room for improvement. You can learn more about the laws that affect you as a homebuyer at Mortgage Borrower's Rights (HUD) and here at Fair Housing.

Take Advantage of Special Programs

There are a wide variety of special programs for first-time buyers. A good place to start is the Federal Housing Administration. The FHA's Mortgage Loan Place is a good place to get acquainted with FHA's programs and the different ways the program helps first time buyers become homeowners. States and cities also offer special programs to encourage homeownership, HUD's Local Homebuying Programs by State is a great place to start.