Home ownership is alive and well. Owning a home, in fact, is the single item most often mentioned as necessary for the "good life," according to Roper polls. That is in spite of rising home prices, which, in the local market, only have seemed to fuel the quest for a place of one's own.

Sometimes, the strong desire to own a home precludes many practical decisions concerning the purchase. First-time home buyers, in particular, often are guided by their emotions when choosing a house, rather than approaching it in a carefully thought out way.

There are, however, many practical steps you can take if you want to protect your investment; most likely the single largest one you ever will make. Buying a home should be approached systematically, with both eyes wide open, using your brain instead of your heart. So, take off your rose-colored glasses and let's start at the beginning.

If you presently are renting, should you consider buying? This decision can be affected by market conditions, including mortgage rates, home prices, and supply and demand.

In over-all terms, for most people, the advantages of home ownership; pride, status, privacy, inflation hedge, tax considerations, freedom to do what you want; often outweigh those of renting. Renting, on the other hand, affords a greater sense of freedom to move, requires little upkeep or responsibility, and doesn't tie up one's money. (In today' s market, if you just plan to live in a house for a few years, you can't take for granted that prices will keep rising or that you will be able to sell when you want to.)

It always is important to consider the financial and tax implications of owning vs. renting for your personal situation. Paying off a mortgage ultimately builds equity, which can be used as collateral for financing another home or other purchases down the road. Each individual case requires comparing the two costs (owning vs. renting) and considering all the various factors involved. If you need assistance, check with your accountant, who should be familiar with your financial status.

Falling in love with a particular house is wonderful, but not a good enough reason for buying it. Of course, you must like it a lot, but buying a house no longer is a purely emotional decision. Today, financial considerations play an expanded role in the purchase deliberations.

Calculating what price range you can afford helps you conduct your house hunt with realistic expectations. To determine this, you need to know how much mortgage you can carry or, looking at it another way, how much money the bank will allow you to borrow.

There are some simple ways of calculating this yourself: Subtract all your non-housing monthly debts and expenses (e.g., credit card and loan payments, tuition, transportation, food, clothing) from your monthly income to calculate how much income can be applied to housing expenses, including mortgage payments, real estate taxes, and insurance premiums. This amount should come to no more than 33% of your total monthly income.

Armed with this information, you can go to a lender, who will confirm and refine these numbers for you based on current interest rates. Because mortgage lending is so competitive these days, most lenders will do this with no obligation on your part.

Also important to know is how much money you can make available for a down payment that is paid upon the signing of a contract, usually several weeks or even months prior to closing. The larger the down payment, the more equity you will have in your home and the smaller your monthly payments will be.

Closing costs should be calculated as well, since these funds must be available at the time of closing. A good rule of thumb is to estimate three to five percent of the purchase price.

Once you know what you can afford, you should stick to homes in your price range. If you are realistic with your budget, you will be better off in the long run. Looking at a $300,000 home on a $220,000 budget most likely would be a waste of time and will prolong your house hunting.

After analyzing your financial status and how much house you can afford, the next step is to seek out the help of qualified Real Estate professionals to assist you in the hunt throughout the various stages. This gives you the emotional security of knowing that there are experts out there who can assist you and are just a phone call away.

Although home priorities are very subjective, they are essential to every house hunt. Schools, neighborhood, commuting distance, property taxes, energy efficiency, shopping accessibility, and recreational facilities are but a few of the considerations a buyer should make beforehand.

For the first-time home buyer, deciding priorities often is the hardest part, but worth the time and effort. It is very important to have them clear in your mind before starting, since it is easy to throw practicality to the wind when you stumble upon that adorable house, filled with charm, but totally inappropriate for you for many important reasons.

Make a list of your priorities, rate each on a scale of one to 10, then keep it with you for reference each time you look at a house. That way, you won't wake up one day in a house that is 40 minutes away from the train station when you have to commute to work.

One of the first things a real estate salesperson will ask you when starting your house hunt is which type or style of house you are interested in. It is important to know and state your preferences up front, in order to save time in your search. Styles include ranch, split-level, colonial, Cape Cod, contemporary, bi-level, Tudor, and Victorian. Each has advantages and disadvantages, depending on your needs.

Keep in mind that many styles of homes are not readily available in certain neighborhoods, an added reason for stating a preference early on. That way, if the only home style you like is contemporary and there are virtually none available in the town you want to look in, you can save valuable time.

In addition to house style, there are many factors that help determine if a particular home is a good investment, now and in the future. Location probably is the biggest factor to be considered; not only the village or town it is in, but what street and even where on the street the house is positioned. Look around at the other homes. Buying the worst house on a great street is much smarter than buying the best house on a so-so street.

Other investment features include quality of construction and materials; the physical condition of the home as to the structure, foundation, and mechanical systems; floor plan; garages; entrances; windows; decks/porches/patios; kitchen (at least enough room to eat in); number of bathrooms (a three-bedroom house should have at least two full baths); windows; closets (the more the better); bedrooms (how many and what size); family room/den; storage areas, including attics, crawl spaces, and basement (this is a regional consideration); and dining room.

At this point, you basically are ready to begin your house hunt. If you have no restraints on when you must move, then consider the factors involved in the time of year you start your search. Sellers are most optimistic in early spring; March, April, and May; becoming increasingly receptive to offers (below asking price) later on toward, and into, the summer. Remember, though, that if you first are house hunting in the summer, you probably won't be in your new home when the school year begins. It takes time to find that perfect house, as well as to close on it.

December is considered a real bargain time in the residential market, despite fewer listings to choose from. January is a good time to start checking listings if you plan to buy in early spring, since a seller who lists at this time may have pressing reasons to sell early in the season.

With so many listings to choose from and free time so much in demand these days, many house hunters will try to see as many homes as possible in the least amount of time. What often happens is that, by the end of the day, you can't remember which house had the large family room or which one needed a new deck, but had the wonderful swimming pool.

To avoid unnecessary trips back for a second look, keep notes of the special features of each house as you narrow down the choices. If your sales agent provides you with computerized sheets on each house, make your notes directly on them. Taking instant photographs of these homes also is a help. With the notes and photographs, you readily can recall each prospect in greater detail for a more precise comparison and evaluation.

When making important decisions, it often is helpful to compile a list of pros and cons. Taking this one step further, you actually can develop a "best home rating." Using the priorities you developed earlier in your house hunt, separate each into one of three categories: financial, design, and general. Financial should include such considerations as asking price, property taxes, energy efficiency, commuting expenses, and property condition. Design should cover suitability of house, number of bedrooms and baths, kitchen, attic/basement, etc. General should encompass items such as neighborhood, schools, shopping, recreation, and entertainment. All categories can have an "other" that you feel is especially important.

After establishing your priorities, rate each on a scale of one to 10. For example, commuting distance may not be particularly important to you, so give it a two or three rating; a school system may be of the utmost importance, so it would rate a 10.

Once you break out all the priorities and rate them accordingly, you can develop your own chart with the ideal ratings vs. the actual rating you gave each home. When all the homes are rated, the relative weighted totals should signal your top choices, based on realities that impact you, rather than emotions regarding a particular feature that can cloud your better judgment.

The condition of the home; that of the structural and mechanical systems; is an important factor in evaluating whether a house is a good investment. Up until recently, buyers had to rely on their own devices to evaluate a house's condition prior to purchase. Today, the old principle of "buyer beware" in real estate no longer holds true.

Once you have decided on the house you want, you have the right to demand a professional inspection prior to purchase. Depending on the state, this happens before or after a contract. For a reasonable fee, a home inspection service will evaluate the major elements of a house and provide you with facts about its physical condition.

Included in the basic fee which averages $250 is a full report, following the inspection. This summarizes the technical findings­in laymen's language­and makes recommendations, if requested, including the estimated cost of repairing any major deficiencies uncovered during the inspection. Most house inspection services can check for radon and termites and have the household water analyzed for an additional fee.

It is important to join the inspector on the inspection, not only to learn firsthand about any serious defects uncovered, but for helpful tips on operation and maintenance of all the systems in the house. (Be wary of any inspector who discourages you from coming along on the inspection.) For a first-time buyer, this often is the most enlightening experience, providing the first real "intimate" look at the house and well worth the two or more hours it generally takes. To select a home inspection company, it is best to use the following criteria:

* Choose an impartial company, meaning one that has no conflict of interest with the decision to purchase.

* Examine the company's past experience. For instance, how long has it been operating and how many inspections has it performed? Check with the Better Business Bureau for any complaints.

* Look into the firm's reputation and find out if its work is regarded as professional. One measure of this is if it carries the necessary insurance, including "errors and omissions." This is the equivalent of professional liability or malpractice insurance and only is affordable and available to those inspectors who have excellent track records. A reputable firm will carry general liability insurance and workers' compensation as well. Carrying the necessary insurance is an excellent indicator of a firm's professionalism.

* What kind of training do the firm's inspectors receive and how up- to-date are they kept? A national company with local offices, for example, has the resources to offer and maintain rigid training and qualifying procedures for inspectors.

* Determine if the firm is credible, meaning will it stand behind the inspection report by offering a written warranty? Ask around to see if others know of its work.

There will come a time when you will need to make a formal offer to purchase, based on the asking price (and the inspection, if it already has been done) in the form of a legal contract. This is the beginning of the negotiation stage of the house-buying process; often the most intimidating to the first-time buyer.

You and the seller must come to an agreement on the sale price, usually after some concessions by both parties, and generally with your realtor as the middleman. It is important to remember that, in most cases, the realtor legally is working for the seller, so the best advice is to keep your negotiating strategy to yourselves and don't reveal more than is necessary.

Many buyers at this point will have their attorney negotiate for them and prepare the contract once agreement has been reached. Most often, down payment is required at the time of contract signing. If the inspection is done after the contract is signed; there has to be a clause in the contract stating that the sale is contingent on a satisfactory inspection; any major deficiencies (as defined in the contract) will have to be negotiated as to who will pay for the repairs.

No one ever said purchasing a home was easy, but there are ways to help ensure that unforeseen problems don't crop up. Doing your homework and taking the steps outlined above will minimize the odds of this happening.

Some of the additional safeguards a home buyer can take are title insurance; homeowner's, flood, and personal liability umbrella insurance policies; and a pre-closing inspection. The latter usually is done within 24 hours of closing and is much more than a last "walk-through" of the house. When properly done, this is a final check of the property by the buyer to confirm its physical condition. Some home inspection services will provide buyers with a pre-closing checklist to help them perform the inspection systematically and thoroughly.

With these added elements, and following these guidelines, you will sleep better knowing you are doing just about everything in your power to protect your investment.