Get everything in writing.

This is especially important during any kind of contract negotiation. Verbal commitments are hard to prove after the fact, so make sure that all the small details are added to the purchase contract. If the seller says you can have the curtains, make sure the contract says so!

Figure out your finances.

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.

Determine your housing needs.

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.