1. Start by knowing what you can afford in a Portland mortgage. The general guidelines are that you should be able to afford somewhere between two and 3 times your gross income.

2. Create a home “wish list”. After you have created your list, prioritize it.

3. Select where you want to live. put together a list of 3 or 4 neighborhoods you would be happy living in, and don’t forget to take into account items such as schools, parks, proximity to shopping (or whatever is important to you), and of course, safety.

4. Start saving your money. Do you have enough money to both qualify for your Portland home loan and put money down for a down payment? In an ideal situation you would have 20% of the purchase price saved to use as a down payment. And don’t forget to factor in closing costs. Closing costs – including taxes, attorney’s fee, and transfer fees ? usually average somewhere around two to seven percent of the cost of the home.

5. Be sure your credit is in order. Get a copy of your credit report to make sure there aren’t any errors on it, and if there are, get them fixed right away. Your credit report is your history of all your credit, bad debts, late payments and delinquencies.

6. Figure out how much of a mortgage you qualify for. How large of mortgage do you qualify for? You’ll also want to look at different loan options ? for example 30 year or 15 year fixed or Adjustable Rate Mortgages ? and decide which is better for you.

7. Get pre-approved. Organize all the documentation a Portland lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. For example, you might qualify for certain special mortgage programs or down-payment assistance programs. Ask your lender about state and/or local government resources that might have more information about programs like these. Another option, if you have an IRA account, could be to use that money you’ve saved to buy your first home and you won’t need to pay a penalty for early withdrawal.

9. Calculate the costs of Portland homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Find a good Portland Realtor. Some first time buyers opt to try to do the deal alone rather than getting an agent. Why bother? An agent is there to represent you and make sure you get a fair deal. And remember, since you’re the buyer in this deal, the cost of the agent’s services will come as a percentage of the sale the seller is getting, so it’s not money out of your pocket.