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So, you want to buy your first home but don't know how to go about it? You can always wing it, learn as you go.

I did, and I lucked into a great deal. But my approach was as smart as a nap while driving -- rife with potential danger.

The first thing I did was run out to look at homes for sale. That's like checking out tuxes and caterers without finding a first date.

``Slow down the process,'' said John V. Pinto, a San Jose buyer-broker and 30-year real estate veteran. ``Too many people look for houses with their hair on fire.

``First-timers can be very disorganized. They don't see a lender or real estate agent. They start walking through open houses, looking at the paper, looking online -- they may even have Realtors driving them around. None of this is good because a seller won't even talk to you without your financing in place.''

The most important thing to have when buying a home -- besides financing -- is knowledge.

Figure out -- in detail -- your budget and finances. Decide what type of house fits your needs, location and lifestyle.

Be clear about how much you are able and willing to spend. Ask friends, neighbors, co-workers and anyone else you trust to recommend an agent. Even if the agent is your mother, check her out thoroughly. (Your local real estate association is a good place to start.) Shop for a lender or mortgage broker. Check out first-time buyer programs. Learn about the mortgage and sales contract process. Buy a calculator.

Take a breath. And then start looking at homes.

Got it? OK, let's take it one step at a time.

Finding an agent

Real estate agents are very, very, very important. I chose the wrong agent and paid dearly in gray hair, an upset stomach and needless despair.

``Getting an agent by referral is an excellent way to choose one,'' says Carol Burnett, vice president of Alain Pinel Realtors in Saratoga. ``But remember, the recommendation is as good as the source.''

A good agent, says Burnett, is willing to educate clients about everything, from the start of the process to turning over the house keys -- including finding the right lender, choosing a neighborhood and a home, making a sound offer, inspecting the home and finding a good plumber.

And a good agent will be there for every important step -- up until you sign the final paperwork.

``In fact, the agent should be there when you sign anything,'' Burnett says.

Finding a lender

A lender, banker or mortgage broker is the person who helps you secure a loan.

A lender can be the bank where you deposit your paycheck, the place you already have a relationship with. Banks have menus of resources to lend directly.

If you don't have a relationship with a bank, you could turn to a mortgage broker, who ``is more like a Nordstrom personal shopper,'' says Jerry McClain, president of the Silicon Valley chapter of the California Association of Mortgage Brokers.

Prepare to feel naked and meet your financial demons.

The lender will obtain a copy of your credit report and explain how to get it primed.

It's best to work with a financial expert to clean credit blemishes well before you plan to buy. It could take months or longer to set things straight.

Do everything these experts suggest quickly, because clean credit saves money on a loan. Dirty credit causes higher interest rates and, in some cases, conjures the dreaded ``points'' -- cash up front for a loan deal.

The lender also will help you figure out much money you will be allowed to borrow. But don't take his or her word for it. Your income may qualify you for a mortgage with a payment of $4,000 a month, but can you truly afford that?

``More importantly, a good lender will teach you about all of your financing options,'' including programs for first-time buyers, says Mike Donohoe, a broker and president of the Santa Clara County Association of Realtors.

Choosing a house

Think carefully about your needs and priorities. You may love that mini-mansion on the hill, but you don't have to start there. Most people don't stay long in their first home.

And choose a home based on your future needs as much as your current ones. It may seem fine to go with a one-bathroom home at first, but if you plan on having children or lots of guests, the single toilet and tub will quickly become inadequate.

Now that you have an idea of what you need, be flexible.

``My first strategy is to go out and show a buyer 20 to 25 homes, so they can get some perspective,'' Burnett says.

You might initially think you must have a formal dining room, with visions of Thanksgiving get-togethers or impress-your-boss dinners. But holidays make up only a few days of the year, and you might not like your boss anyway. Now, doesn't a spacious kitchen make more sense?

Making a bid

When you find the perfect home, what do you offer?

``Find out how many days the property has been on the market. The longer on the market, the more motivated the seller,'' says Robert Aldana, president of the Hispanic Association of Real Estate Professionals in Santa Clara County and author of a guide on how to buy a home.

Aldana strongly suggests learning the reason for selling. Are they moving for a job? Did they buy a new house? Is it a foreclosure?

``The information can give you negotiating power,'' Aldana says.

Your agent can usually find the answers.

``Terms are as important as price,'' Aldana says. ``A motivated seller will be more likely to sell for less, or agree to pay closing costs, add carpet or a pay for a new roof.''

The current market -- unlike in the past several years -- belongs mostly to the buyer. That means you can ask a seller to sweeten the deal: pay for some or all of the closing costs, make some minor repairs, even throw in the washer and dryer.

If sellers have time on their side or multiple offers, it's a different ballgame.

Know whether the property is fairly priced. Find out what other homes on the block sold for. Be willing to walk away.

But, if the home is within a good price range, it becomes a personal preference.

``If it's truly the home you want, you may have to pay a little more,'' Aldana says. ``Or you'll spend the next six months looking at properties and comparing them to the one you really wanted and wish you had paid that extra $5,000. You'll end up kicking yourself.''

Closing the loan

You're close to the end, but it's not over.

The final papers include inspection forms, a home warranty application, geological hazard reports and loan documents -- which will detail the true interest rate, terms of payment and final purchase cost.

That's why signing them is the scariest moment. Sticker shock might make you question why you got married, chose your career or even why you were born.

To avoid that kind of pain, Sandy Rose, vice president of escrow operations at Old Republic in San Jose, offers good advice.

``Obtain copies of the closing documents a day or two beforehand,'' Rose says. But, she adds, today's refinancing rush makes that difficult. Try to do it anyway.

Bring your agent and your lender. They can answer your questions; the escrow or title agent cannot.

And, finally, make sure the check you bring is a cashier's check or that you've initiated a wire transfer. American Express or other forms of payment are not accepted.

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