Take the confusion out of buying a home! We've got all the basics you need to know whether you are in the process of selling your home or you're a first-time home-buyer. Get expert tips and advice on finding the perfect neighborhood, agreeing on a home with your spouse, hiring a real estate agent, and getting home inspections.

We all dream of owning our own nest one day (and some of you are already living this dream!). If you’re not looking for a new place, well, you might want to skip to the next post.

I’m sure many of you know about the tax incentive for new home buyers -- remember that one we told you about back in January? You can get a credit of up to $8,000 and claim this credit on either your 2008 or your 2009 federal tax return if you buy a new or existing home between January 1 and November 30 of this year. If you need a little extra push, consider this your big shove because time is ticking on this perk. The stimulus for new home buyers expires in the next few months.

So, what are the guidelines that first-time home buyers should be following in today’s market? The New York Times recently published an article on the seven new rules to follow when house-hunting for your realistic dream home. These include figuring out your future financial roadblocks (like a career change or layoff). But could this really be the answer? Do we just wave sayonara to the 5-bedroom house with roof peaks and a circular driveway that we’ve been squirreling away our hard-earned cash for? What buying advice have you been getting, and which of these strategies do you agree with most?

Don't know the first thing about insuring your home and all those registry good in it?  We've got the basic so you're covered, you know...in case. When you're moving in together you should take inventory of your home. And who knows? Your stuff may be worth more than you thought.

What Is Homeowners Insurance?

Now that you have valuable goods (from wedding rings to all those presents), it's time to protect them. A standard homeowners policy generally covers four categories:

• The structure of your home: if it's damaged or destroyed by fire or most other natural disasters
• Your belongings: if they're stolen or destroyed by fire or other insured disasters
• Liability: if you, your family members, or pets cause damage to anyone else or anyone else's property
• Additional living expenses: if you have to live away from home due to fire or other insured damage

Do We Need It?

Not by law, but if you're getting a mortgage, your lender will most likely require it. Even if it's not required, do you want to risk losing the investment you’ve made in your home?

How Do We Get It?

Do a room-by-room inventory, taking photos of valuable items (write the relevant info on the back of each picture) or make a video (give important details camera). Note products' make, model, and serial number, and include receipts and appraisals to the list. Make a copy of your inventory and store it with a relative or in a safety deposit box.

How Do We Choose?

Shop around; get quotes from at least three companies and compare them. The Insurance Information Institute can give you more information about companies, policies, and other basics. A little homework goes a long way.

How Can We Save?

• Get a higher deductible. The higher the deductible, the lower your rate.
• See if you can get a lower rate if you buy your homeowners and car insurance from the same company.
• Ask about discounts (for having home-security devices or for staying with the same company for a long time).
• Most policies cover personal property even when you’re not at home, like if your wallet gets stolen at the mall -- make sure your policy is one of them. 

How do we know if it’s better for us to keep renting or to buy?

You need to ask yourself these questions, and be honest with yourself. Do you generally know where you’re going to be in five years, or is it all up in the air? Do you have any dirty secrets lurking in your credit history that you may want to clear up before buying? If you eventually want kids, will there be enough space? Are you willing to give up some financial freedoms (big-ticket items, vacations) in order to pay a mortgage? Buying a property is more than just calculations; it's a huge commitment that requires sorting out your priorities.

That said, the raw numbers do count. You need to take an honest look at your income and assets, plus your current spending habits. Then you can use a handy online mortgage calculator, like the ones at Bankrate.com, to see how much you could afford as a down payment and how much you can comfortably pay for a monthly mortgage. You have to consider that you’ll need to pay taxes, insurance, and a monthly maintenance fee if you’re buying an apartment.

The next step is to check home prices in your area. In high-rent cities, you might be surprised to find that buying a home actually works out to be cheaper each month than renting. Every couple faces the question of whether to rent or buy differently; you need to take a step back, think about your situation and what you can afford, and go from there.

We’re serious about buying a place, but how much do we bid on it?

The most important thing you can do when it comes to real estate is be informed. Do your research -- ask your real estate agent, look at county records, or go to Zillow.com, RealEstateABC.com, EAppraisal.com, and Cyberhomes.com to look at “comps,� which are the sales prices of comparable homes in the neighborhood where you want to buy. Make sure they’re recent (six months or less) to reflect the current trends in the market. Once you’ve done your homework, you’ll have a good idea of what the home’s really worth. Have any real estate tips of your own? Share them in the comments!

Nestpert Joseph Russo, Executive Director of The National Council for Financial Literacy and Real Estate Expert at ITeachAboutMoney.com

I heard you have to put down at least 20 percent as a down payment now. Is that true?

Not necessarily. Certain lenders, like FHA loan programs, still require as little as 3 to 5 percent down. Just keep in mind that to qualify for a lower down payment, you’ll likely be required to buy mortgage insurance, which is tacked onto your monthly payment (to protect the lender in case you default on your loan). But there's another catch...

The other catch is, it’s harder than ever to qualify for a bigger mortgage (and the less you put down, the larger your mortgage will be). If you do put down 20 percent, which is a big chunk of change up front, make sure that you also have a cushion of six months’ worth of mortgage payments to make sure you’ll be covered.

Nestpert Joseph Russo, Executive Director of The National Council for Financial Literacy and Real Estate Expert at ITeachAboutMoney.com