By Rita Brown, Correspondent

The commitment to purchase a home, particularly for a first-time buyer, has the potential to be an anxiety-riddled proposition. Emotions can run amok, but being prepared can notch down the drama and expedite the final transaction. Here are some steps prospective first-time home buyers can take before expending time, energy and money.

# Step 1: Know your finance options

So what should, what could, prospective first-time home buyers do to diminish their anxiety? As with most endeavors, knowledge is power. Maureen Francis, real estate professional with Snyder, Kinney, Bennet & Keating of Birmingham, emphasizes the need for prospective purchasers to have an accurate understanding of their financial options.

"It is a good idea to sit down with a lender at least a few months in advance to get an idea of how much the buyer feels comfortable paying, and take care of any credit issues that might impact the mortgage the buyer will receive from a lender," she said. Spending the additional time in financial preparedness can add up to substantial savings during purchase negotiations.

# Step 2: Identify needs, set priorities

How long are you planning to stay in the home you're planning to purchase, and what are your needs? A single buyer or young couple has different needs than a retired couple or large family. Understanding needs, immediate and long-term priorities and knowing your finance options can eliminate inappropriate choices. The idea of a "fixer-upper," a favorite among first-time buyers, can be seductive, but not necessarily practical, Francis says.

"They (first-time home buyers) need to have an understanding of what it costs to fix the big things that are no fun to repair vs. doing the cosmetic things that make a house a home," she said. "A wet basement or leaky roof might take a lot of money to repair. We try to point some of those things out before we get to the point of making an offer and hiring an inspector."

A young professional spending long hours career-building rarely has the time or energy needed to do major home repairs. So why look at that cute fixer-upper if time constraints suggest a condo?

"I make it a point to educate my clients as much as possible," said Leslie Palmitier, associate broker for Max Broock of Rochester. "I want my clients to really understand what they're getting, whether it's about contracts or repairs a home may need."

"When we first started looking for a home, we were more idealistic. We really wanted all the bells and whistles ... and we were looking at the more cosmetic things, charm and character, by the end we were looking at structure," said Debi Khasnabis of Troy, recalling when she and her husband, Kevin Upton, began their search for a new home earlier this summer. Once the couple became more familiar with the search process, they opted for a more pragmatic approach to finding a home.

"We found it helpful to request and review seller's disclosure statements," Upton said.

By concentrating only on well-maintained properties, Khasnabis and Upton removed a number of homes from consideration that did not meet their refined criteria.

# Step 3: Know the market

Researching the current market is vital. Review comparable home sales and offerings in the area you're looking in to determine how long they were, or have been, on the market; comparing the listing price to actual selling price. This information will help you negotiate a realistic offer to purchase.

Placing needs and wants into the context of market availability for the first-time buyer is imperative.

"We realized that what we wanted and what we could really get were different," Khasnabis said.

# Step 4: Plan for unexpected expenses

Financing considerations go beyond what type of mortgage to obtain and how much to put down. Francis believes that educating the client includes making sure there is complete understanding of all the seldom discussed costs incurred prior to, during and after the sale.

"First-time buyers have never paid real estate taxes," Francis said. "It's important for them to understand how millage rates vary, even within one city, and how taxes will change after ownership is transferred."

The bottom line for first-time buyers is understanding finances and financing options, analyzing needs and focusing on appropriate properties. For more information, visit www.fanniemae.com and www.freddiemac.com. The Web site operated by the U.S. Department of Housing and Urban Development, www.hud.gov, also offers a number of informational links and helpful advice for first-time home buyers.